Bid Early On

Aussie bond futures moved higher in early Sydney trade, adding to overnight gains, as local participants reacted to Russia’s official recognition of the DPR & LPR, the two separatist regions in Eastern Ukraine. Western nations are in the process of tabling sanctions, with the leaders of the U.S., Germany, France, the UK & NATO already noting their displeasure re: Putin’s latest move. We also note that Putin has ordered the dispatch of peacekeeping troops into the breakaway regions, with the first batch of Russian military personnel already entering the separatist states, per reports. Contracts sit a touch shy of their early Sydney peaks, but are still firmer on the day YM now prints +5.0, while XM is +6.0.

• An address from RBA Assistant Governor Kent, in front of the Australian Financial Markets Association, headlines the local docket on Tuesday. We will also get weekly consumer confidence data from ANZ-Roy Morgan & A$150mn of Sep-25 I/L supply from the AOFM.