AUD Swaps: Swap rates shift higher after strong trade data; EFPs out

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AUD swap rates were more than 10bps higher after strong domestic trade data. EFPs were mostly wider.

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  • Swap rates shift more than 10bps higher after trade data

  • New issues


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Swap rates shift more than 10bps higher after trade data

The AUD rates market opened weaker after the FOMC minutes and fell further as domestic data was stronger than expected.


Official data released earlier today showed that Australia’s trade surplus was AUD11,791m in May, beating expectation of AUD10,500m and previous period of AUD11,158m. The growth was due to the increased export prices in gold, gas and coal. The upside surprise has triggered renewed fears over further RBA tightening although the board decided to have a hawkish pause when they concluded the meeting earlier this week.


Prior to the release of the trade data, BNP Paribas wrote in note that it would close its 2s/10s flattener. The trade idea was a tactical position on a call for further RBA tightening.


In mid-afternoon Sydney trading 3-year bond future was down 11-ticks at 95.92, and the 3s/10s futures curve was 1.5bps steeper at 4bps.


Swap rates were more than 10bps higher. Flow wise, 5-year swaps saw some closing out of prior positions after the data. 10-year went through briefly at 4.525%, up from previous close of around 4.415%.


EFPs were mostly wider. 3-year was up marginally at 33.75bps, 5-year up 1.25bps at 37bps and 10-year up 0.75bp at 42.25bps.



New issues

  • CBA self-led AUD700m worth of bonds as follows:


    • AUD400m, July 4, 2024 paying AUD 3M BBSW + 48bps.

    • AUD300m, August 15, 2024 paying AUD 3M BBSW + 49bps.


    The bank also added AUD100m to its existing July 4, 2024 line to bring the new size to AUD500m. The deal pays AUD 3M BBSW + 48bps.


  • CHN Industrial Capital LLC issued via ANZ and Citigroup AUD175m in 5.8%, July 13, 2026 at 145bps over ASWs.


  • NAB sold the following bonds:


    • USD125m, April 8, 2024 paying USD O/N SOFR + 49bps.

    • HKD900m, 5.05%, July 12, 2024 via BOC.

    • SGD135m, 4,3%, July 12, 2024.


  • Suncorp-Metway raised AUD1bnn via selling the following July 12, 2028 bonds:


    • AUD800m paying AUD 3M BBSW + 105bps.

    • AUD200m, 5.2%.