Cheapening Bias Maintained; Q2 GDP Due

Aussie bond futures have largely tracked the weakness in core global FI markets in overnight trade, adding to the cheapening bias observed in ACGBs after the RBA’s decision to raise rates by 50bp on Tuesday.

• That leaves YM at -4.5 and XM at -8.0, a little above their respective overnight troughs, with the latter contract operating a shade above recently made ten-week lows at writing.
• Cash ACGBs run 3.0-8.0bp cheaper across the curve, bear steepening.
• EFPs are little changed, while Bills run 2 to 6 ticks cheaper through the reds, bear steepening.
• Up next, A$800mn of ACGB Apr-33 will be on offer at auction, ahead of Q2 GDP data (BBG median +0.9% Q/Q vs. prev +0.8%; BBG median +3.4% Y/Y vs. prev. +3.3%).