Biased Lower On Friday

The Aussie bond space looked through the weekly AOFM issuance announcement, with the weekly ACGB issuance task upsized to a more normal A$2.0bn level after 2 weeks at A$1.0bn. The AOFM is seemingly comfortable enough with the calming of bond market volatility that has been witnessed over the last week or so. Still, the AOFM held off from the syndication of the new ACGB Nov '32, which could come in the coming weeks if the bond market continues to act in an orderly manner. YMM1 -0.8 at the close, with XMM1 -5.0, mostly in the wake of U.S. Tsy market gyrations both overnight and during Sydney hours.

• Looking to next week, RBA Governor Lowe will give the opening remarks at the Melbourne Business Analytics Conference on Monday, with the local weekly economic docket headlined by the labour market report (Thursday) and preliminary retail sales data (Friday). Elsewhere, RBA Assistant Governor Kent will make a couple of appearances.