Swaps - AUD
AUD rates market is fimer as on growing number of COVID-19 cases outside of China’s borders. 10-year swaps have been offered.
AUD rates are lower after the jobs report showed the unemployment rate rose in January. BNG and Emirates have issued Kangaroo Bonds and KfW is next.
The 10y AUD swap spread has dipped to a new low. The RBA considered a rate cut at its February meeting. TCV issued a new AUD2.25bn 11y bond.
There has been flow in a AUD swap butterfly spread. Recent Bills/Libor flattening has triggered long-dated Semi issuance. KDB issued 5y bonds.
There has been trade in short AUD forwards as virus-related sentiment improves slightly. The AOFM will issue 21y ACGBs by syndication this week.
AUD rates market has been little moved. Swaps saw some paying interest in the morning and such interest faded after mid-day.
Listing of Asia Pacific bond issues likely to create hedge requirements across rates markets.
AUD swap flow has picked up as the bearish correction has slowed. An RBA official warned that the coronavirus is a serious risk to the economy.
The NZD rates curve is bear steepening after the RBNZ signalled the end of its easing cycle but there have been questions around its virus assessment.
There has been trade in AUD curve spreads after the recent flattening. The latest linker auction went well. First Abu Dhabi Bank sold a Kangaroo Bond.