US TSY FLOWS: BLOCK BUY TYZ6

"RBA: INFLATION REMAINS ELEVATED AND SOME OF THE UPSIDE RISKS FLAGGED IN AUGUST ARE MATERIALISING
RBA:  CONFLICT IN THE MIDDLE EAST HAS BROADENED AND GLOBAL ENERGY PRICES ARE NOW MUCH HIGHER THAN HAD BEEN ASSUMED IN THE AUGUST FORECAST
RBA: THE THREE INCREASES IN THE CASH RATE TARGET SINCE THE BEGINNING OF THE YEAR HAVE TIGHTENED FINANCIAL CONDITIONS AND THE ECONOMY APPEARS TO BE SLOWING
RBA: SHORT-TERM MEASURES OF INFLATION EXPECTATIONS REMAIN ELEVATED

RBA: BUT INFLATION IS STILL TOO HIGH AND THE BOARD JUDGED THAT, IN LIGHT OF RECENT DEVELOPMENTS, A FURTHER TIGHTENING IN FINANCIAL CONDITIONS IS WARRANTED TO SUPPORT A RETURN OF INFLATION TO TARGET IN A REASONABLE PERIOD
RBA: RECENT INFLATION OUTCOMES IN AUSTRALIA WERE STRONGER THAN EXPECTED AT THE PREVIOUS MEETING" - RTRS

RBA: THE BOARD WILL CONTINUE TO DO WHAT IT CONSIDERS NECESSARY TO BRING INFLATION SUSTAINABLY BACK TO TARGET, INCLUDING INCREASING THE CASH RATE TARGET FURTHER IF NEEDED" - RTRS

As was widely expected, the RBA hiked rates 25bp to 4.6% in an unanimous decision as inflation remains elevated. Future decisions will rely on data and risk assessment. See statement here. More details to follow. Governor Bullock's press conference in an hour.
Key paras:
"Since the previous meeting, some of the upside risks to inflation are materialising. There have been further disruptions to global oil supply and recent data suggest that growth and inflation in Australia have been higher than expected. Higher fuel prices have partially been passed through to prices of other goods and services. This inflation impulse is in addition to the effect of capacity pressures in the economy.

The Board remains focused on ensuring that high inflation does not become embedded."

"The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed. Accordingly, the Board will be attentive to the data and the evolving assessment of the outlook and risks to guide its decisions. "
 

The AUD went into the RBA trading around 0.7008, -0.14% and the SPI was trading around 8727.0, +0.08%. “RBA RAISES CASH RATE TARGET BY 25BPS TO 4.60%; EST. 4.60%, RBA BOARD WILL RELY UPON DATA, ASSESSMENT OF RISK,  RBA: INFLATION REMAINS ELEVATED. RBA WILL RAISE CASH RATE FURTHER IF NEEDED” - BBG. The AUD has moved a few spreads higher in reaction to this.

• {AUDUSD Curncy} - 0.7025, +0.11%
• {AUDNZD Curncy} - 1.2403, +0.20%
• {AUDJPY Curncy} - 110.68, +0.21%
• {XPA Index} - 8711, -0.10%
• YM -4 bps, XM -2 bps