A Touch Firmer To Start, Plenty To Lookout For Tuesday

Yields run 2.5-4.5bp lower across the ACGB curve, bull flattening, as ACGBs benefit from U.S. Tsys recovering from worst levels on the day on Monday. YM prints +2.0, while XM is +4.0.

• Local headline flow has been somewhat light since the Sydney close, leaving cross-market gyrations, largely centred on Fedspeak, in the driving seat.
• Bills are flat to +4 through the reds, in sympathy with the light richening in bonds, while terminal cash rate pricing in RBA dated OIS is little changed vs. levels seen late on Monday, showing just below 3.90%.
• The minutes from the latest RBA monetary policy decision headline the domestic docket on Tuesday, although the deluge of post-meeting communique from the Bank (headline by Governor Lowe & Deputy Governor Bullock) seemingly limits the potential for market impact. A reminder that the release of the Bank’s review of its forward guidance mechanism will cross at the same time.
• Further afield, monthly economic activity data out of China will provide some interest.
• Outside of the economic docket, a reminder that Australian PM Albanese will meet Chinese President Xi later today.