Cheapening Extends

Aussie bonds have continued to trickle lower in Sydney dealing, with a lack of a bid evident in global core FI markets in lieu of Friday’s firmer than expected U.S. PPI data, leaving participants on the cautious side as they look ahead to Tuesday’s U.S. CPI print and a raft of central bank decisions later in the week. That leaves the major cash ACGB benchmarks running 3-9bp cheaper across the curve, while YM is -3.4 & XM is -7.9. EFPs are wider, suggesting payside flow in swaps is aiding the pressure. Bills run 1-4bp cheaper through the reds, little changed vs. early Sydney levels.