Bear Flattening Overnight

Local participants force a gap lower in both YM and XM at the re-open, leaving the former down 7.5 and the latter down 4.5 vs. settlement at typing, although the move in the latter is more pronounced in early Sydney trade, resulting in a slight unwind of some of the bear flattening pressure witnessed overnight. The bear flattening of the U.S. Tsy curve seemingly drove matters after Monday's local close, and came in the wake of the NZ CPI-driven bear flattening during Sydney hours.

• The RBA minutes headline the local docket today, although that should be a relatively vanilla affair given the meeting's outcome and the Bank's glass half full approach.