ACGBs Twist Flatten, RBNZ Calls Eyed

The overnight twist flattening of the Aussie futures curve extended a little in Sydney, although that particular extension is back from the day's extremes, with YM -2.0 and XM +0.5 at typing.

• The front end of the curve (including Bills) was seemingly subjected to some trans-Tasman pressure after ANZ maintained their call for a Feb '22 hike from the RBNZ, but highlighted "that the balance of potential policy regrets has firmly tilted, with the risk being we'll see a higher OCR before the year is out."
• 3-Year EFPs sit the best part of 3.0bp wider on the day, with some pointing to mortgage related flow in swaps.
• There was no reaction in futures to the announcement of a rare tap of a long bond (ACGB Jun '51) via auction in the AOFM's weekly issuance slate, while the space also shrugged off a lockdown order covering 4 areas of Sydney (the lockdown will last for at least a week).
• The aforementioned round of ACGB Jun '51 supply headlines locally on Monday. As a quick note, for those of you that were looking ahead to the panel participation by RBA Governor Lowe at the Australian Banking Association Banking Conference on 30 June 2021, the RBA website notes that "this event has been postponed by the organisers."