A Little Cheaper

The wider risk-positive price action fleshed out in earlier bullets has applied modest pressure to the ACGB space, leaving YM -1.5 & XM at unchanged levels at typing, with cash ACGB trade seeing 10s outperform across the curve as the wings cheapen by ~1.5bp.

• EFPs are a touch narrower on the day, with the 3-/10-Year box flattening.
• The IR strip runs 2-6bp cheaper through the reds, with the front end leading.
• Domestic focus is centred on the impending release of the minutes from the RBA’s May meeting, although as we noted earlier, the deluge of Bank communique that followed the meeting may mean that there is limited headroom when it comes to the potential for the minutes to reveal anything in the way of fresh meaningful information.