Adds To Post-RBA Rally

ACGBs are richer (YM +4.0 & XM +3.5), building on yesterday’s post-RBA decision rally, after US Tsys closed 7-14bp stronger after weaker than expected JOLT job openings and Factory Orders. Cash ACGBs opened 3-4bp stronger on the day and 5-8bp stronger from pre-RBA decision levels. The AU-US 10-year yield differential is at -12bp.

• Swaps rates opened 4-5bp lower with EFPs slightly tighter.
• Bills strip bull flattens with pricing +3 to +9.
• RBA dated OIS has opened 1-3bp softer across meetings with the May meeting priced for a 19% chance of a 25bp hike. Year-end easing expectations are at 29bp.
• Today's key events in the Antipodes will be the RBNZ Policy, which both market pricing and BBG consensus expecting a 25bp hike, and the address by RBA Governor Lowe at The National Press Club in Sydney. Lowe’s speech will provide an opportunity to gain a deeper understanding of the bank's perspective on the economy and the outlook for monetary policy.
• Judo Bank Services and Composite PMIs are also slated for today.
• Further afield, the global calendar is relatively light with highlights being European PMIs and German Factory Orders ahead of US ISM Services.
• The AOFM is scheduled to sell A$800mn of the 2.75% 21 June 2035 bond today.