AUD Swaps: Light offers ahead of domestic jobs data

Australian Dollars
There has been some dip-buying in AUD rates, and light receiving ahead of the domestic jobs data.

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  • Bond futures firmer amid dip-buying

  • Light offers ahead of domestic jobs data

  • AOFM sells 2041 ACGBs

  • New issues


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Bond futures firmer amid dip-buying

AUD bond futures were firmer today, after several consecutive sessions of losses. The rally has been backed by dip-buying as they had fallen to the lowest level since early-July. The move has also been outperforming those in the USD rates market in overnight trading which saw a selloff in longer-dated rates following some strong domestic data.


By mid-day 3-year bond future was up 5-ticks at 96.09, and the 3s/10s futures curve was a basis point steeper at 30.5bps.



Light offers ahead of domestic jobs data

Players have been waiting for the outcome of the country’s monthly jobs data as it would direct the market to a better estimation of the next RBA move. Currently, economists forecast unemployment to tick a tad higher from 3.5% in June to 3.6% in July amid a smaller increased in new jobs creation.


Nevertheless, the rally in the underlying cash bond market saw a couple of offered-side flows in 10-year in a tight range around 4.5825%, down from previous close of around 4.60%. 3-year went through briefly around mid-day at a tad above 4.155%, down around 4bps from Tuesday’s close.


EFPs were wider across the curve. 3-year was up 0.75bp at 24bps, 5-year up 0.25bp at 40.25bps and 10-year up 0.25bp to 35.25bps.



AOFM sells 2041 ACGBs

The AOFM sold AUD500m in 2.75% May 21, 2041 ACGBs at tender today, bringing the new size of the line to AUD14.3bn. Bid-to-cover was 2.1 times and average yield was 4.5139%.



New issues

  • CBA issued via MS NOK1bn in 4.54% August 24, 2033 bonds.


  • Tasmanian Public Finance added AUD19.5m to its existing 2%, January 24, 2030 bond line to bring the new size to AUD1.2305bn.