Bull Steepening Evident, Muted Reaction To ACGB Nov-32 Sale

Australia's yield curve has shifted lower and runs steeper on the lead from overnight moves in U.S. Tsys, with some volatility seen upon the release of the AOFM's weekly issuance slate. When this is being typed, yields sit 9.0-5.7bp lower, with the policy-sensitive 3-Year ACGBs leading gains.

• Benchmark futures contracts started on a firmer footing, before trimming initial gains. They have now regained poise, with YM last +11.0 & XM +7.5, but still operate shy of session highs printed in early trade.
• Bills now run 5-14 ticks higher through the reds.
• The AOFM released its issuance slate for next week, noting that it plans to issue a new May '34 Bond via syndication in the week beginning Nov 7.
• The bid/cover ratio in today's auction for A$800mn of ACGB Nov '32 was 2.38x, down from 3.19x in the previous offering, while the tail widened. The yield on that tenor in secondary market sits at 3.76%, down 7bp on the day.
• Australian PPI inflation quickened to +6.4% Y/Y in Q3 from +5.6% prior, which comes after above-forecast CPI data released earlier this week.