A Touch Stepper, Busy Economic Slate Eyed On Wednesday

The ACGB curve runs a little steeper in early Sydney trade, after the early overnight session support for futures from softer than expected European inflation data gave way to spill over from weakness in the U.S. Tsy space.

• That leaves the major cash ACGB benchmarks running little changed to 3bp cheaper, while YM is -1.0 and XM is -3.0.
• Bills print -1 to +3 through the reds, with some light flattening apparent.
• We haven’t seen much in the way of market moving domestic news flow since yesterday’s Sydney close.
• Looking ahead, Wednesday’s domestic docket is bursting at the seams. It includes Q3 completed construction work, monthly CPI, building approvals & private sector credit, as well as A$700mn of ACGB Apr-33 supply and an address from RBA Head of Domestic Markets Kearns in front of the 2022 Australian Securitisation Conference.
• Further afield, there will be interest in the official PMI data out of China.