Biased Cheaper On Global Impulse

Aussie bonds are biased lower this morning, after futures softened in the overnight session, taking their cue from global central bank speak and wider core FI market weakness.

• That leaves YM and XM hovering a little above their overnight lows, -1.0 & -6.5, respectively. Wider cash ACGB trade sees a similar degree of bear steepening.
• Bills run 1-4bp cheaper through the reds, with the back end of the whites and front end of the reds leading the weakness.
• The minutes from the latest RBA monetary policy decision headline the domestic docket today. Participants will be on the lookout for discussions re: the debate surrounding the size of the latest hike i.e. 25/50bp (the Bank went with 25bp, for a third consecutive meeting), or if there were serious discussions surrounding the potential for a pause in the tightening cycle.
• Note that soft data out of Australia has flagged some growing concerns re: consumer spending, although seasonal abnormalities may be at work there (see previous bullets for more details). ’23 is shaping up to be a much tougher year for the consumer than ’22, as the impact of this year’s monetary tightening takes hold.