Busy Local Docket Ahead Of Long Weekend

The impetus from the U.S. Tsy space drove futures in overnight trade, leaving YM -1.0 & XM -3.5 at typing, at/just above respective overnight lows, with the cash ACGB curve running steeper on the day.

• Wednesday saw our policy team publish their latest RBA insight piece. The piece flagged their understanding that "with signs of gathering economic recovery, the Reserve Bank of Australia could start a discussion on whether to effectively trim its guidance period for very low interest rates as soon as the April meeting." The piece went on to caution that "while strong signs of recovery are appearing, MNI understands the central bank is still unconvinced unemployment can come down sufficiently to drive wages growth and inflation into the 2 to 3% target range under three years, regardless of current bond yields and market inflation expectations."
• On the semi front, Moody's affirmed Queensland's Aa1 rating, maintaining its stable outlook. Moody's noted that the state "faces a significant and long-lasting increase in debt that will leave its finances weaker for a prolonged period, as the state shoulders some of the burden of the coronavirus outbreak and continues with large investment plans. However, the state's commitment to contain the weakening of its financial strength, and a diversified and dynamic economy, support the rating."
• Local focus on Thursday moves to retail sales, job vacancies, CoreLogic house prices, trade balance & housing finance data. We will also get the RBA's latest round of scheduled ACGB purchases and the release of the AOFM's weekly issuance slate ahead of the elongated Easter weekend. The ASX 24 trading schedule for the Easter holiday period can be found here.