February 01, 2023 00:54 GMT
Twist Steepening Creeps In
AUSSIE BONDS
ACGBs have twist steepened at the margin, with the major benchmarks sitting 1bp richer to 1bp cheaper, as the space shakes off any trans-Tasman impetus in the wake of the Q4 labour market data out of NZ. YM sits +1.5, while XM is flat. EFPs are essentially unchanged. Bills run flat to +3 through the reds, with the strip steeper at the margin. Very near-term RBA dated OIS is little changed on the day, with 23bp of tightening showing for next week’s meeting. Macro headline flow remains modest, with focus on Chinese Caixin manufacturing PMI data and the latest Fed monetary policy decision noted.
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