AUSTRALIA: Snap State Election Called, First Test Of ALP Support In 2024

Feb-14 16:59

The Australian state of Tasmania will hold a snap state election on 23 March following the refusal of two independent members of the state legislature to negotiate a new governing agreement with the incumbent minority Liberal adminstration of Premier Jeremy Rockliff. This will be the first state election since New South Wales voted in March 2023 to oust the incumbent centre-right Liberal-National coalition in favour of a minority centre-left Labor administration. While Tasmania sits as Australia's smallest state in terms of population and size, with Queensland voting later in 2024 and the next federal election due by Oct 2025 at the latest, the Tasmanian vote could be used as a bellwether for broader gov't support.

  • The latest state-level opinion polling, from YouGov, shows the Liberals on 31% (down from 48.7% in 2021), while Labor sit on 27% (down from 28.2%) with the left-wing environmentalist Greens on 15% (from 12.4%). The major change has been the strong polling support for the big-tent, social conservative Jacquie Lambie Network (JLN), on 20% support.
  • Australian PM Anthony Albanese's Australian Labor Party trail Peter Dutton's Liberal-National coalition in party polling, but lead in two-party preferred vote polling.
  • The federal gov't has made changes to its proposed income tax cut plans in recent weeks, but polling from Guardian Essential shows public opposition to the broader tax reform programme remains in place.

Historical bullets

STIR: Midday SOFR Options

Jan-15 16:59
  • Block 5,000 SFRU4 96.00/96.50 call spds 3.5 over 2QU4 97.12/97.62 call spds
  • 4,625 SFRH4 95.25 puts vs. 96.75/97.00 call spd ref 96.59

US 10YR FUTURE TECHS: (H4) Trading Above Support

Jan-15 16:57
  • RES 4: 114-06+ 2.00 proj of the Oct 19 - Nov 3 - Nov 13 price swing
  • RES 3: 114-00 Round number resistance
  • RES 2: 113-12 High Dec 27 and the bull trigger
  • RES 1: 112-26+ High Jan 12
  • PRICE: 112-11+ @ 16:54 GMT Jan 15
  • SUP 1: 111-06+ Low Jan 05
  • SUP 2: 111-01+ 50-day EMA
  • SUP 3: 110-16 Low Dec 13
  • SUP 4: 109-31+ Low Dec 11 and a key short-term support

Treasuries are holding on to the bulk of their recent gains and price remains above 111-06+, the Jan 5 low. The latest recovery suggests that the recent correction lower, between Dec 27 - Jan 5, may be over. If correct, this signals scope for a climb towards the key resistance and bull trigger at 113-12, the Dec 27 high. Clearance of this level would resume the uptrend and open the 114-00 handle. Key pivot support lies at 111-01+, the 50-day EMA.

ITALY AUCTION PREVIEW: Exchange announcement

Jan-15 16:44

The MEF has announced it will hold an exchange via the electronic trading system on Wednesday 17 January. On offer will be:

  • Up to E4bln of the 4.20% Mar-34 BTP (ISIN: IT0005560948)
The MEF will look to buyback:
  • the 1.75% Jul-24 BTP (ISIN: IT0005367492)
  • the 3.75% Sep-24 BTP (ISIN: IT0005001547)
  • the Oct-24 CCTeu (ISIN: IT0005252520)
  • the 1.45% Nov-24 BTP (ISIN: IT0005282527)
  • the 2.50% Dec-24 BTP (ISIN: IT0005045270)