AUSSIE BONDS: Cheaper With US Tsys, Mixed Fedspeak, Geopol In Focus

ACGBs (YM -4.0 & XM -3.0) are cheaper as US tsys finished with a modest bear-flattener. US yields finished 2-3bps higher across benchmarks. 

• Newsflow was light apart from geopolitical tensions between Russia and Ukraine. Yields traded higher going into the NY session amid chatter that Russia was open to a cease-fire agreement with Ukraine. Reports that Ukraine fired another barrage of missiles at Russia, however, plus mildly hawkish comments from Fed Cook saw yields move off highs.
• Also, unlike some of the hawks, Fed Collins seems satisfied that disinflation will continue, and makes a specific note of saying that she doesn't think housing inflation "raise[s] concerns for me about the durability of inflation’s trajectory back to 2 percent – as long as new tenant rent inflation remains subdued and overall inflation expectations stay well-anchored."
• Cash ACGBs are3bps cheaper with the AU-US 10-year yield differential at +17bps.
• Swap rates are 3bps higher.
• The bills strip has bear-steepened, with pricing -1 to -5.
• RBA-dated OIS pricing shows no easing by year-end. A 25bps rate cut is not fully priced until July.
• Today, the local calendar will see a speech by RBA Governor Bullock at the Women In Payments Conference at 1900 AEDT.