Cheaper & At Lows Ahead Of Fed Speak Later Today, US NFP on Friday

ACGBs (YM -4.0 & XM -4.0) sit weaker and at Sydney session lows. In the absence of market-moving data, local participants have been content to track US tsys ahead of tonight’s US data and Fed speak, and tomorrow’s US Non-Farm Payrolls.

• Cash US tsys are dealing flat to 2bps cheaper in today’s Asia-Pac session. Later today the US calendar sees Weekly Jobless Claims and Trade Balance data alongside a heavy spate of Fed speakers.
• (Bloomberg) Australian apartment approvals tumbled to a 12-year low in February as capacity constraints and rising costs weighed on construction. (See link)
• (Bloomberg) -- Iron ore fell further toward a 10-month low on increasing shipments from top exporter Australia and faltering steel demand in China, the world’s largest consumer. (See link)
• Cash ACGBs are 3-4bps cheaper, with the AU-US 10-year yield differential 2bps higher at -19bps.
• Swap rates are 3bps higher.
• The bills strip is cheaper, with pricing -1 to -3.
• RBA-dated OIS pricing is flat to 2bps softer across meetings. A cumulative 31bps of easing is priced by year-end.
• Tomorrow, the local calendar will see Trade Balance data for February alongside AOFM's planned sale of A$800mn of 2.5% May 2030 bond.