Free Trial
JGB TECHS

(M2) Correction Extends

US STOCKS

Late Session Rebound

AUSSIE 10-YEAR TECHS

(M2) Corrective Cycle Remains In Play

AUSSIE 3-YEAR TECHS

(M2) Gains Still Considered Corrective

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
AUSSIE BONDS
AUSSIE BONDS: Westpac note that "AU bonds have generally outperformed during
bearish UST moves. That was evident again last week, as the benchmark AU-US 10yr
bond spread moved toward -50bp for the first time in more than 3 decades.
However, the spread has narrowed rapidly and might be due for a correction near
term. Indeed, we saw some profit-taking on AU outperformance trades toward the
end of last week. A correction would be supported by our view that enough has
been priced-in for the Fed & that US 10yr yields have shifted sufficiently to
reflect that expectation. Medium term, we exp. the usual AU-US relationship to
continue & will still be looking to fade any sustained AU underperformance. That
will be supported by the AUD looking relatively cheap on a number of crosses,
most important vs. Yen. If that were to emerge, then we would also expect the AU
3-10yr futures spread to flatten back in to the old 50-60bp trading range.
Outside of offshore support, a period of consolidation and range-trading has
also seen the curve flatten in the past. From an outright perspective, we see
3yr futures as just a touch above midrange, with selling likely above 97.95.
10yr futures have exhibited very solid support around 97.20."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.