ACGBs Slightly Cheaper, NAB Business Surveys Shortly

ACGBs (YM -2.0 & XM -2.5) are cheaper today, yields have followed US Tsys lower after U. of Mich. Sentiment was 67.4 vs 76.2 expected, down from 77.2 in Apr, while inflations expectations were higher than expected with the 1yr coming in at 3.5% vs 3.2% and the 5-10yr expectation 3.1% vs 3.0% expected.

• Cross-asset on Friday the NASDAQ was little changed while the S&P 500 closed up 0.16%, the BBDXY edged slightly higher, the AUD was down 0.26% while Iron ore is little changed trading at $115.90/ton.
• US Tsys curve bear-flattened on Friday, yields were 3-5bps higher, with the 2Y yield +5bp at 4.866%, 10Y +4.3bps to 4.496%, while the 2y10y -0.690 at -37.129
• The ACGB curve is little changed this morning, yields are 1-3bps higher with the 2y10y +0.550 at 29.64, while the AU-US 10-year yield differential is 2bps lower, now -15bps
• Swap rates are 1-3bps lower.
• The bills strip is slightly cheaper down 1bp
• RBA-dated OIS implied rate now pricing 2-3bps higher into the November meeting, while the market is now pricing just 2bps of easing into year-end to a terminal rate of 4.33%
• Today, we have the NAB business survey's