Back From Early Peaks, Looking Through Latest AOFM Announcement

No lasting reaction in futures when it comes to the release of the latest AOFM issuance update, with a lack of fresh colour re: the new ACGB Nov-33 syndication and a lower-than-expected initial ACGB borrowing task for FY22/23 providing a brief, limited uptick for futures, which has reversed. Note that the contracts have drifted away from the early Sydney peaks, alongside U.S. Tsys, as the Asia-Pac region reacts to Tuesday’s Russia-Ukraine developments. A quick reminder that Tuesday’s initial rhetoric surrounding the talks between the two nations provided a sense of optimism (which allowed equities to rally and bonds to sell off) although a more guarded approach from Western & Ukrainian officials later in the day re: the prospects of concrete progress took the shine off the initial headlines, with core FI markets firming as a result. The Asia-Pac region is seemingly focusing more on the positives observed on Tuesday. YM is last +3.0, while XM is +2.0, as the contracts operate comfortably above their respective overnight troughs. A$1.5bn of ACGB Apr-24 supply is due later.