AUSSIE BONDS: Smooth Digestion Of Mar-36 Supply But Lower Demand
May-30 01:23
The latest ACGB Mar-36 auction saw adequate demand, with the weighted average yield coming in 0.39bps through prevailing mid-yields, according to Yieldbroker, continuing the trend of firm pricing at recent ACGB auctions.
- However, the cover ratio declined to 2.5792x from 3.3687x.
- As highlighted in our preview, bidding at today’s auction faced an outright yield 5-10bps lower than the previous auction level and about 25bps below the late February peak.
- However, the 3/10 yield curve was around 30bps steeper than the previous auction level but sat around 20bps flatter than its recent high.
- Global sentiment toward bonds had also deteriorated recently, providing a less than favourable backdrop for today’s issuance.
- Early post-auction trading both XM futures and the bond line are modestly richer.
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STIR: RBA Dated OIS Pricing Slightly Mixed Ahead Of Q1 CPI
Apr-30 01:22
RBA-dated OIS pricing is slightly mixed across meetings ahead of Q1 CPI data, with movements ranging from +2bp to -2bps.
- A 50bp rate cut in May as a 10% probability, with a cumulative 116bps of easing priced by year-end (based on an effective cash rate of 4.09%).
Figure 1: RBA-Dated OIS – Today Vs. Prior Close
Source: MNI – Market News / Bloomberg
MNI: CHINA PBOC CONDUCTS CNY530.8 BLN VIA 7-DAY REVERSE REPO WEDS
Apr-30 01:22
- CHINA PBOC CONDUCTS CNY530.8 BLN VIA 7-DAY REVERSE REPO WEDS
CNH: USD/CNY Fixing Edges Down, Error Term Narrowest Since March
Apr-30 01:19
The USD/CNY fix printed at 7.2014, versus a BBG market consensus of 7.2678.
- Today's fix delivered another downtick in the fixing, but we remain above the 7.2000 level. The fixing error narrowed further to -664pips. This is the narrowest outcome since March 20, showing the error term is taking some of the slack from lower USD index levels.
- USD/CNH has been relatively steady in the first part of Wednesday trade, the pair unable to sustain +7.2700 levels.
- Coming up shortly we have the PMI prints for April.
