Cheaper Following US Tsys' Weakness On Friday, Light Local Calendar

ACGBs (YM -5.0 & XM -3.5) are weaker after US tsys nudged 2-3bps cheaper in trading ahead of the weekend. With limited economic data on Friday, the market focused on revisions to US CPI data after Fed Waller highlighted the importance of the adjustments to confirm the downward trend for inflation in a recent speech. Overall, CPI revisions provided only minor and offsetting adjustments that did little to change the outlook that the Fed will be pivoting to rate cuts in the coming months.

• This a reminder there will be no cash trading for US tsys until the London session with Japan out for observance of the National Foundation Day holiday.
• The S&P finally eclipsed the 5,000 level, rising 0.6% on the day.
• Cash ACGBs are 4-6bps cheaper, with the AU-US 10-year yield differential 1bp wider at +1bp.
• Swap rates are 3bps higher.
• The bills strip has bear-steepened, with pricing -1 to -6.
• RBA-dated OIS pricing is 2-4bps firmer across meetings beyond June. A cumulative 39bps of easing is priced by year-end compared to 67bps at the start of February.
• Today, the local calendar is empty.
• The AOFM plans to sell A$800mn of 1.00% Dec-30 bond on Wednesday.