A Little Flatter Overnight, ACGB Supply Eyed

Futures saw some light bull flattening during the final overnight session of last week, with YM +1.0 and XM +2.5 come the bell, aided by bull flattening on the U.S. Tsy curve. Some local catch up may be in play early this week, which could support futures.

• Positive local COVID-related headlines continued to circulate over the weekend, with a further loosening of restrictions surrounding NSW and Melbourne noted.
• A$1.0bn of ACGB 0.25% Nov-24 supply headlines locally on Monday. We will also get the latest round of scheduled ACGB purchases from the RBA. Note that the RBA is unlikely to step in to buy ACGB Apr-24 today, with Friday's move to do so seeing the line yielding 0.115% at the close, after testing 0.18% in early Sydney dealing.
• Matters in China may get some attention early this week, with greater localised COVID restrictions seen in some areas (including in Beijing), alongside warnings that case numbers are set to rise in the coming days. Elsewhere, a pilot property tax scheme was outlined by Chinese state-owned media over the weekend.