AUSSIE BONDS: Flat, Subdued Session, Focus On US Jobless Claims

ACGBs (YM flat & XM flat) are little changed after rebounding off Sydney session lows. Outside of the previously outlined Judo Bank PMIs, there hasn't been much by way of domestic drivers to flag. 

• The bounce of lows reflects a strengthening in cash US tsys, benchmarks 1-2bps richer, in today’s Asia-Pac session after yesterday’s heaviness. Today's focus in the US will be weekly Jobless Claims, Flash PMIs, New Home Sales and Regional Fed data from Chicago and Kansas City.
• Cash ACGBs are little changed with the AU-US 10-year yield differential at +24bps.
• Swap rates are flat to 1bp lower, with EFPs slightly tighter.
• The bills strip is slightly richer with prices flat to +1.
• RBA-dated OIS pricing is steady. A cumulative 3bps of easing is priced by year-end.
• Tomorrow, the local calendar is empty apart from the AOFM’s planned sale of A$300mn of the 4.25% 21 June 2034 bond.  
• TCV has priced an A$1.25bn increase of the 5.00% 20 November 2040 fixed rate benchmark bond via syndication, taking the total outstanding to A$2.266 billion, according to Westpac. Bond priced with a re-offer spread of +128bps over the 10-year futures contract, equivalent to +99.7bps over the ACGB 2.75% 21 May 2041, a re-offer yield of 5.76%. (per BBG)