AUSSIE BONDS: RBA Dated OIS Is Slightly Softer Ahead Of Employment Data
Jul-17 01:26
RBA-dated OIS pricing is softer across meetings today. A 25bp rate cut in August is given an 88% probability, with a cumulative 56bps of easing priced by year-end.
Figure 1: RBA-Dated OIS – Current Vs. Prior
Source: Bloomberg Finance LP / MNI
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AUSSIE BONDS: ACGB Jun-54 Auction Goes Smoothly
Jun-17 01:23
Today’s auction result extended the recent trend of firm pricing for ACGBs, with the weighted average yield printing 0.31bps through prevailing mids, according to Yieldbroker. Moreover, demand improved, as reflected by a cover ratio of 2.8433x, up from 2.4833x at the previous auction.
- The bond’s outright yield was broadly unchanged from the previous auction, though it remained around 20bps below the peak reached in May.
- The 10s/30s yield curve was slightly steeper than at the last auction, and sat at its steepest level since late 2021 — a potentially supportive technical factor.
- Sentiment toward longer-dated global bonds remains cautious, which may have tempered demand.
- In the wake of the auction, the ACGB Jun-54 has traded slightly richer in the secondary market.
MNI: CHINA PBOC CONDUCTS CNY197.3 BLN VIA 7-DAY REVERSE REPO TUES
Jun-17 01:21
- CHINA PBOC CONDUCTS CNY197.3 BLN VIA 7-DAY REVERSE REPO TUES
CNH: USD/CNY Fixing Lowest Since March, Error Term Stays Negative
Jun-17 01:19
The USD/CNY fixing printed at 7.1746, versus a Bloomberg market consensus of 7.1819.
- Today's fixing is the lowest since Mar 19 (fixing was at 7.1697). This continues the steady downtrend seen in the fixing outcome. The error term stayed negative at -73pips.
- USD/CNH is slightly lower post the fixing outcome, last close to 7.1800, which leaves us comfortably within recent ranges.
