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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
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 AccessMNI China Press Digest Jan 18: Property, Fiscal, Tax
MNI: PBOC Sets Yuan Parity Higher At 7.1174 THUR; -5.99% Y/Y
Westpac's Overview On the ACGB Space
Westpac note that "it has been our view for some time that we are currently in a consolidation phase following the re-pricing of inflation and policy risks in Q121. In addition, our view has been that rallies will be short-lived and shallow. We are still of that view, so the recent U.S.-led rally should be seen in that context. Indeed, if H221 provides a clear improvement in the economic outlook, as we believe, then we think that yields can rise toward 2% at the 10-Year maturity, so current levels represent an opportunity to reset or add to strategic shorts. Over the next 1-3 months, however, we expect that the range-trading theme of recent months is the most likely evolution for price action. Under that scenario, in the past, the AU curve has slowly flattened and the 10-Year AU-U.S. bond spread has generally narrowed. We think that is a likely scenario in coming months."
- "The question is whether the 10-Year AU-U.S. spread will be able to move below 0bp on a sustained basis, as it did throughout most of 2018 and 2019. With both the RBA and Fed cash rates at their effective lower bounds, and unlikely to be shifted any time soon, any sustained outperformance is extremely unlikely. However, the conditions for good support of Australian bonds are still in place. AU bonds still offer good value versus peripheral Europe and other AAA nations. The latter is even more apposite given that S&P has moved Australia's sovereign credit rating back to AAA/stable from a negative outlook. To put that in an even broader context, US$14tn of bonds still exhibit a negative yield, so "yield enhancement" support still favours the local bond market. In addition, for those undertaking unhedged positions the AUD is historically undervalued. When we add the fact that we will have negative net issuance of ACGBs over an extended period given the RBA's QE, then there is scope for further outperformance."
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.