A Touch Firmer

Futures hang on to their modest overnight gains in early trade this week, with YM +3.0 and XM +1.0. The uptick in the final overnight trading session of last week came as the bulk of the U.S. Tsy curve recovered from the intraday cheaps lodged during the European morning. The exception to the rule was the longer end of the U.S. curve, which cheapened further later in the day. The impact of that move is being felt in the longer end of the ACGB curve, which is virtually flat at typing, while the belly outperforms.

• Local news flow was relatively limited over the weekend, most of the focus fell on tensions between Australia and China, with the former clearly aligning itself with the U.S. when it comes to the Taiwan situation.
• Note that the RBA's overnight cash rate settled at 0.04% today, after months of printing at 0.03%., potentially on a lack of "traded" activity and expert judgement?
• Monday's local docket sees RBA's Ellis & Jones appearing before the House of Representatives Standing Committee on Tax and Revenue, while the RBA will conduct its latest round of scheduled ACGB purchases. Further afield, the latest round of monthly economic activity data out of China will draw interest.