Back From Early Cheaps

Aussie bonds sit a little above best levels, having unwound the bulk of their earlier losses (derived from the overnight cheapening in Aussie bond futures) throughout the Sydney session, aided by a similar move higher in Tsys.

• Cash ACGBs run 1.5bp cheaper to 2.0bp richer across the curve, twist flattening, and pivoting around 5s.
• YM is -0.5 and XM is +0.5, with both contracts operating a little below their respective overnight peaks. EFPs are little changed, while Bills run 4 ticks cheaper to 4 ticks richer through the reds.
• Little by way of a meaningful reaction was observed in ACGBs on the release of the AOFM’s weekly issuance slate. Next week will see a smaller A$800mn of ACGBs and A$1.5bn of Notes on offer (as well as A$100mn in indexed bonds), compared to A$1.1bn in ACGBS and A$2.0bn of Notes previously announced for this week.
• No economic data releases of note are scheduled for Monday.