A Little Firmer

The aforementioned bid in U.S. Tsys dragged Aussie bond futures higher in post-Sydney dealing, with the contracts finishing just shy of best levels, leaving YM +4.0 & XM +3.0 shortly after the Sydney re-open.

• There hasn’t been much in the way of notable domestic news flow to digest since the Sydney close, although it is worth remembering that Chinese President Xi reaffirmed his commitment to the country’s zero COVID strategy late in Wednesday’s Sydney session, underlining the idea that he is willing to accept the short-term impact on the economy from any related restrictions.
• Bills run unch. to +4 through the reds early on, with the strip flattening.
• ANZ job ads data and private sector credit headline the domestic docket today. Also be aware of the potential for trans-Tasman impetus, with RBNZ chief economist Conway set to speak on housing in just under an hour. Elsewhere, Official PMI data out of China provides the headline risk event in Asia-Pac hours, with modest rates of expansion seen for both the manufacturing and non-manufacturing readings after last month’s contractions.