AUD Swaps: 10y bid after FOMC minutes; EFPs tighter

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10y AUD swaps saw some light paying after latest FOMC minutes that showed some members were supportive about further tightening.

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  • 3y bond future leads a selloff

  • 10y bid; EFPs in

  • New issues


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3y bond future leads a selloff

3-year AUD bond future has been leading a selloff today, after latest FOMC minutes that showed that some members were supportive about further interest rate hike, and amid anxiety over the outcome of debt-ceiling negotiation.


3-year bond future was down a few ticks at the open, but fell further soon after to marked 10-ticks lower of 96.57 after lunch break. The 3s/10s futures curve was 4.5bps flatter at 27.5bps at time of writing.


10y bid; EFPs in

Contrasting the wilder reaction at the short-end in the cash bond market, the swap market saw relatively busier flow in 10-year although the mood stayed cautious on the day. A dealer reported some decent amount of paying in 10-year since after lunch break. It traded up to 6.5bps higher of 4.165% intraday though the majority of the flow has been between 4.145% and 4.155%. 3-year traded briefly in mid-afternoon domestic trading at up to 4.7725%, up from yesterday’s close of around 3.685%.


EFPs were generally tighter across the curve.3-year was down 1.75bps at 36bps, 5-year down 2.75bps at 47.25bps and 10-year down 2bps at 47.25bps.



New issues

  • LB Landesbank Baden-Württemberg (LBBW) self-led AUD35m in 3.1% June 10, 2025 bonds.


  • New South Wales Treasury Corp upsized its existing 3% April 20, 2029 bonds by AUD150m to 10.08bn. Priced at 44.75bps over ACGBs.


  • Treasury Corp of Victoria added AUD100m to its existing 3%, October 20, 2028 bonds to bring the new size to 10.6bn. Priced at ACGBs + 53bps.