ACGB '51 Curve Extension Drives Steepening

ACGB steepening was evident surrounding the ACGB '51 syndication, as
the bookbuild topped A$36.0bn and A$15.0bn priced at the tight end of
the guidance range. YM -1.5, XM -5.0, with little in the way of cushion
evident as several strategists noted their interest/recommendations in
long 10-Year ACGB vs. short 10-Year U.S. Tsy expressions, which they
believe will come to the fore as the impact of the auction wanes.

• Elsewhere, the latest round of ABS payrolls data showed another
  downtick for wages & the number of people employed, as the metrics
  moved further away from their post-COVID peaks. This presents a
  particular source of worry with the knock-on effects of the Victoria
  COVID-19 situation set to magnify in the coming weeks.
• Q2 CPI headlines locally tomorrow, although statistical quirks and the
  impact of COVID-19 alongside the action already taken by the RBA
  render it a little bit meaningless re: the policy discussion.