AUSSIE BONDS: Slightly Mixed On A Data-Light Day, Cash Us Tsys Richer

ACGBs (YM +2.0 & XM -0.5) are slightly mixed on a subdued data-light Sydney session.

• Outside of the previously outlined S+P Global PMIs, there have been few domestic drivers to flag.
• Offshore, the BoJ raised rates by 25bps, as widely expected, taking the policy rate to 0.50%. The board voted 8-1 in favour of the move (1 vote against a hike).
• Cash ACGBs are flat to 2bps richer with the 3/10 curve steeper. The AU-US 10-year yield differential is at -15bps.
• Cash US tsys are 1-3bps richer, with a steepening bias, in today’s Asia-Pac session after yesterday’s twist-steepener.
• Swap rates are 1-2bps lower, with the 3s10s curve steeper.
• The bills strip +1 to +3 across contracts.
• RBA-dated OIS pricing is flat to 3bps softer across meetings today. A 25bp rate cut is more than fully priced for April (113%), with the probability of a February cut at 73% (based on an effective cash rate of 4.34%).
• The local market is closed on Monday for the Australia Day holiday.
• Next week, the AOFM plans to sell A$300mn of the 4.75% 21 June 2054 bond on Tuesday.  The AOFM also plans to sell A$800mn of the 2.50% 21 May 2030 bond on Friday.