Swaps - AUD
There has been trade in long AUD swaps and forwards as the market corrects following Tuesday's sharp post-RBA rally.
AUD swap spreads have corrected narrower as the market rallies in the wake of Tuesday's lower than expected 25bp RBA rate hike.
Long AUD swap spreads have pushed to their widest point in 9 years as rates plunge ahead of the looming RBA rates announcement.
10-year EFP hit multi-year high but dealers expect further upside to come. 3-year saw receiving interest and the box steepened up a tad.
The AUD rates curve is bull flattening on the BoE announcement and swap spreads continue to widen.
The AUD swap spread widening trend is slowing. The RBA is increasingly expected to deliver another 50bp rate hike next week.
The 3y AUD swap rate rose to its highest point in a decade this morning. Domestic corporate issuance is running at a record breaking pace.
AUD swap spreads are widening further as the sell-off extends. The RBA is expected to hike its cash rate target by 50bps again next week.
The slump in US treasuries in overnight trading saw a sharp selloff in AUD rates. Swaps have been well bid and EFPs are wider.
The AUD rates curve is bear steepening. The RBA considered a 25bp hike this month and published its Bond Purchase Program Review findings today.