The AOFM has released its weekly issuance slate:
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The spill over from the impulse in ACGBs in lieu of Q4 wage data out of Australia nudges Tsys further away from early session cheaps, leaving the major benchmarks running 0.5-2.0bp richer across the curve, as the belly lags and the wings lead. TYH3 trades at best levels of the day as a result, last +0-02 at 111-04, operating at the top of a 0-05+ range.
Aussie bonds pull away from session lows as the Q4 WPI print of +3.3% Y/Y provides a miss vs. wider market & RBA expectations, which stood at +3.5% Y/Y, although we should remember that the RBA has flagged signals from business re: increasing near-term wage pressure. YM -2.0 & XM -7.0, comfortably off worst levels of the day post-data, with terminal cash rate pricing coming in to sit just above 4.25% after sitting around 4.35% pre-data. Cash ACGBs run 2-7bp cheaper, with 10s weakening the most on the curve.
AUD/USD dipped post the Q4 wages miss. From around session highs of .6865, we fell to a low into the 0.6830/35 region. We have stabilized somewhat now, back near 0.6850. Outside of NZD, which sits slightly weaker, ahead of the upcoming RBNZ meeting, the A$ is underperforming the rest of the G10.