AUSSIE BONDS: Yield Curve Vulnerable To Rates Outlook
Nov-20 01:47
Unlike its NZ counterpart, which has recently steepened to its highest level since 2021, the ACGB yield curve remains near its flattest point since April, albeit slightly steeper than its recent low.
- The November meeting minutes reiterated that the RBA’s central scenario is “in balance” with risks to both the downside and upside. How these risks will develop is likely to determine whether monetary policy stays on hold or rates are cut further and while it is “not yet possible to be confident” about which scenario will materialise, the Board will “remain cautious and data dependent”. With core inflation above target and ongoing signs of a recovery in demand, policy is likely to be on hold in December and into early 2026, depending on the data.
- Consistent with this message, the AU 3s10s yield curve appears vulnerable to any further upward revision in year-ahead cash rate expectations (see chart).
Bloomberg Finance LP
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CHINA: Central Bank Injects CNY68.5bn via OMO
Oct-21 01:27
- The PBOC issued CNY159.5bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY91bn.
- Net liquidity injects CNY68.5bn.
- 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 1.41%, from prior close of 1.43%.
- The China overnight interbank repo rate is at 1.30%, from the prior close of 1.30%.
- The China 7-day interbank repo rate is at 1.41%, from the prior close of 1.40%.
CNH: USD/CNY Fix Set At Fresh YTD Lows, USD/CNH Near 7.1200
Oct-21 01:22
The USD/CNY fix printed at 7.0930, a fresh low for 2025 and back to Oct last. The BBG market consensus was 7.1219, leaving the fixing error at -289pips, only slightly tighter than yesterday's -356pips outcome. USD/CNH is testing sub 7.1200 in latest dealings, with today's fixing result to keep the downside bias in the pair intact. A clean break under recent lows (7.1168) should bring the 7.100 level back into focus.
MNI: CHINA PBOC CONDUCTS CNY159.5 BLN VIA 7-DAY REVERSE REPO TUES
Oct-21 01:21
- CHINA PBOC CONDUCTS CNY159.5 BLN VIA 7-DAY REVERSE REPO TUES
