ACGB Space Reacts To RBA Speak

RBA Asst Gov Kent's comments provided some interest in Australia, as the policymaker touched on familiar topics of longer ACGB buys & possible rate cuts, while failing to rule out negative BBSW should the central bank loosen policy further. YM +1.0 & XM +1.0 as we type, both crept higher as Kent was speaking. Cash ACGB yields sit lower, with 2s outperforming. Kent's comment re: BBSW triggered a lift in the Bill space, with contracts now running 1-2 ticks higher. Elsewhere, S&P affirmed Australia's sovereign rating at AAA, with a negative outlook. In the lead-up to the release, RBA's Kent spared a few words on Australia's rising debt burden, calling it "very manageable". Separately, the weekly ABS payroll report revealed that the increase in wages accelerated, while jobs edged lower. There was little to rock the boat in RBA Oct MonPol meeting minutes.

• T-Notes trade -0-03+ at 138-26, happy to hold a 0-02 range. Cash Tsy yields trade marginally cheaper across the curve, with Eurodollar futures running -0.5 to +0.5 tick through the reds.
• JGB futures have edged higher and last trade at 152.13, 3 ticks above settlement. Cash JGB yields sit a touch lower across the curve. 20-Year JGB supply & final Japanese machine tool orders are due later today.