AUD A Touch Firmer After Minutes, ACGB Yields & RBA-Dated OIS A Touch Higher

AUD sees a modest bid in FX trade in the wake of the release of the minutes covering the RBA’s April meeting, while Aussie bonds come under some light pressure and RBA-dated OIS is little changed to incrementally higher across the strip. The reaction was likely linked to the passage in the minutes which noted that “in considering communication of the Board’s decision, members observed that it was important to be clear that monetary policy may need to be tightened at subsequent meetings and that the purpose of pausing at this meeting was to allow time to gather more information.” A reminder that the Bank paused its hiking cycle in April, but left the door open to further tightening, albeit with less commitment to such a move in its guidance paragraph (STIR markets price in ~14bp of cumulative tightening over the next 4 meetings post-minutes, for a terminal cash rate of just over 3.70%). More to follow.