10s Lead Auction/RBNZ-Inspired Bid, Off Best Levels Into The Bell

A solid enough round of ACGB supply and the trans-Tasman spill over from the latest RBNZ decision (universally expected and fully priced 50bp OCR hike delivered and a lack of a decisively hawkish shift, just about) supported ACGBs, allowing the space to add to the gains that came on the back of the overnight session uptick in futures.

• XM managed to show through its overnight peak, although YM didn’t, with both contracts pulling back from best levels alongside a similar move in U.S. Tsys. That leaves YM +3.0 & XM +8.0, with the major cash ACGB benchmarks running 2-8bp richer, as 10s lead the bid.
• Bills sit -4 to +4 through the reds, with a lack of net movement in RBA terminal rate pricing, with OIS still pricing a peak rate of ~3.60%.
• Looking ahead, monthly trade balance data headlines the domestic docket on Thursday.