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Bull Flattening In Play Since Sydney Close, Futures Off Highs

AUSSIE BONDS

Futures firm aggressively in the final overnight trading session of last week, aided by the twist flattening witnessed on the U.S. Tsy curve, although the move in local futures was much more pronounced, pointing to some profit taking/fresh longs being set by offshore investors ahead of this week's RBA decision. The bond futures contracts are off of their overnight peaks, easing in early Sydney trade, with YM +7.0 and XM +14.0. The IR strip has seen some twist flattening since Friday's settlement, trading -1 to +14 through the reds at typing.

  • Monthly Melbourne Institute inflation readings, ANZ job ads, CoreLogic house price and housing finance data are all due today, along with the latest round of scheduled ACGB bond purchases from the RBA. Still, we should expect market jitters ahead of tomorrow's RBA decision (expect our full preview of that event to be released over the coming hours).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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