ACGBs Pressured As Debelle Discusses MonPol Options

Aussie bonds took a hit as RBA Deb Gov Debelle offered some colour on the alternative policy options, listing negative interest rates and FX intervention alongside buying bonds further out along the curve and trimming the interest rates without taking them into negative territory. Although Debelle outlined the downsides of FX intervention and negative rates and later insisted that being an option is not equivalent with being on the table, markets took note of his remarks. The RBA's No. 2 reiterated that the central bank continues to consider additional policy measures to best support the economy. In domestic bond futures space, YM +0.5 & XM +1.5, having erased its earlier gains. Cash ACGB curve has flattened, with yields sitting +0.2bp to -1.9bp. Bills trade unch. to -1 tick through the reds. Focus moves to Australia's weekly payroll jobs & wages data. Earlier, the AOFM auctioned A$150mn worth of linkers.

• T-Notes have inched higher, while holding a narrow 0-02 range, and last trade +0-01 at 139-19. Eurodollars deal -0.5 to +0.5 tick through the reds. Cash Tsys are closed, owing to a public holiday in Japan. Little new to rock the boat, with the latest uptick in T-Notes coinciding with a slide in e-minis, which have just turned red again (albeit have not yet advanced too far into negative territory). Existing home sales and Fedspeak take focus in the U.S. today.