Bid Extends

Local participants are building on the bullish overnight impetus. There hasn’t been much in the way of overt headline flow to trigger the move, although some RBA tightening premium has come out of the IB space (after Fed rate hike premium pared further on Tuesday), with the year-end cash rate now seen below 2.50%, per BBG WIRP (a ~7bp markdown vs. late Tuesday levels). Opening comments from RBA Assistant Governor (Economics) Ellis haven’t added much to the monetary policy debate, at least at first glance. YM & XM have breached their respective overnight peaks, with the former now +15.0 on the day, while the latter is 10.0 better off. A semi supply announcement from the ACT hasn’t impacted the space. The 2- to 3-Year zone of the cash ACGB curve outperforms in wider ACGB trade.