Back From Early Highs Despite Further Local Lockdown Issues

Aussie bond futures are back from their early Sydney highs in what has been a limited session, YM unch., XM -1.0. The cash ACGB curve has seen some light twist flattening, with the long end (15+-Year paper) sitting ~1.0bp richer on the day at typing.

• Alice Springs, NT was the latest area to enter a "precautionary" lockdown, while more broadly, the new local COVID case count numbers remain limited in the grander scheme of things, although that hasn't stopped some of the sell-side names with hawkish calls re: next week's RBA decision from tempering their calls a little (or at least warning on the prospects of an RBA taper).
• Month-end index extension projections were light (AusBond Composite at a mere +0.034 Years), with desks flagging expectations for a lack of support on that front.
• The monthly trade balance and job vacancies readings headline locally on Thursday, with the latest round of scheduled RBA ACGB purchases also due.