ACGBs On Softer Footing, Domestic Data Eyed

ACGB futures have extended their after-hours dip into the Australian morning. YM last -7.5 & XM -8.0, both hovering near session lows. Bills run 3 to 8 ticks lower through the reds. Cash ACGB yields sit 6.5-8.2bp higher across a slightly steepened curve.

• Aussie bonds have come under pressure from weakness in the broader core FI space seen after Asia hours on Wednesday.
• Continued hawkish ECB repricing and expectations of aggressive Fed action to contain inflation kept a lid on gov't bonds.
• Below-forecast U.S. ADP employment change failed to exert any lasting pressure to the Tsys, with futures retreating into the close.
• Australian PMI figures released today were underwhelming. The final reading of August S&P Global M'fing PMI was revised to 53.8 from 54.5.
• Quarterly capex data and monthly housing finance figures will cross the wires later in the day. China's Caixin M'fing PMI may generate some offshore impetus.