AUSSIE BONDS: Slightly Richer, NZ-AU 10Y Diff Pushes To Lowest Since 2020
Nov-19 01:43
ACGBs (YM +1.0 & XM +1.5) are slightly richer after the release of Q3 Wage Price data.
- Wage price index rose 0.8% q/q 3.4% y/y (estimate +0.8% and 3.4%) in Q3.
- “Australia needs 1.9 million extra new homes to bring prices back to levels that would allow a single person on an average salary to buy and comfortably meet loan payments, the country’s largest housing industry body says.” – AFR via BBG
- Cash US tsys are flat to 1bp cheaper, with a steepening bias, in today’s Asia-Pac session after a modest rally. Nvidia's earnings are in focus and due after the market close on Wednesday.
- Cash ACGBs are 1-2bps richer with the AU-US 10-year yield differential at +31bps.
- Today’s auction of the Jun-35 bond showed solid pricing, with the weighted average yield coming in 0.22bps below prevailing mid-yields. Moreover, the cover ratio jumped higher to 3.6450x from 2.9056x at the previous auction.
- The NZ-AU 10-year yield differential is 2bp narrower at -30bps, the lowest since 2020. (see chart)
- The bills strip has bull-flattened, with pricing flat to +2.
- RBA-dated OIS pricing is showing a 25bp rate cut in December at a 4% probability, with a cumulative 14 bps of easing priced by mid-2026.
Bloomberg Finance LP
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CHINA: House Price Decline a Not So Gentle Reminder ahead of 4th Plenum
Oct-20 01:43
- China's New and Used Home prices declines continued in September, picking up pace from the month prior.
- New home prices declined -0.41% (from -0.30% in August) and have declined month on month since May 2023. New home prices -2.66% YoY vs -2.95% in Aug.
- September saw Shanghai and Beijing prices up +0.30% and +0.20% respectively with falls in all all other reported markets.
- The cumulative month on month decline is nearing 10% since May yet with estimations of 40-50 million unsold properties, there could be more declines to follow.
- Used home prices fell -0.64% (from -0.58% in August). The last monthly increase in Used Home prices was April 2023 with the cumulative monthly decline now over 16%. Used home prices -5.24% YoY vs -5.51% in Aug.
CHINA: Central Bank Withdraws CNY64.8bn via OMO
Oct-20 01:29
- The PBOC issued CNY189bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY253.8bn.
- Net liquidity withdrawal CNY64.8bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.40%, from prior close of 1.40%.
- The China overnight interbank repo rate is at 1.30%, from the prior close of 1.35%.
- The China 7-day interbank repo rate is at 1.41%, from the prior close of 1.40%.
MNI: CHINA PBOC CONDUCTS CNY189 BLN VIA 7-DAY REVERSE REPO FRI
Oct-20 01:29
- CHINA PBOC CONDUCTS CNY189 BLN VIA 7-DAY REVERSE REPO FRI
