A Touch Steeper To Start

The Aussie bond futures curve was marginally steeper in overnight dealing, largely tracking the moves observed in U.S. Tsys, although the Tsy curve was subjected to light twist, not bear, steepening pressure.

• YM & XM operate around late overnight session levels shortly after the re-open, with YM -2.0 and XM -4.0.
• The IR strip runs 1 to 8bp cheaper through the reds, with the late whites and early reds providing the weakest points.
• There isn’t much in the way of meaningful domestic headline flow to digest, with participants continuing to debate the terminal rate in the current RBA hiking cycle and the impact of higher interest rates on the domestic economy.
• Friday will see A$800mn of ACGB Jun-31 supply, the release of the AOFM weekly issuance slate and monthly domestic retail sales data.