Trial now
CROSS ASSET

Commodity-Tied Dollar Bloc Leads

JGBS

Cheaper On Wider Impetus

AUSSIE BONDS

YM Off Lows, Trouble Staying Offered In Wake Of GDP

FED

VIEW: BNP Paribas: Faster Tapering

US EURODLR FUTURES

Some Light Selling Seen

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

Westpac note that "CPI has not had a large impact on pricing for a number of quarters. This time, however, could be different. A particularly strong core number would go some way to franking current pricing and keep pressure on the RBA to at least acknowledge the risks to their 2024 expectation for rate hikes. It would also re-price long end inflation risks. A particularly weak number, however, would certainly push market pricing for the start of the cycle back a quarter or so and probably remove 1-2 hikes out of the forward projection for 2024 and 2025. Both would have a potentially large impact on valuations, although given current hawkishness, and recent long end cross market outperformance, the latter is likely to have a slightly larger impact."

  • "In our view, as extreme policy accommodation continues to be wound back around the world, the curve will be defined by a tactical steepening phases being short-lived and shallow within a secular flattening."