Cheaper, Narrow Ranges, Light Calendar

ACGBs (YM -7.0 & XM -8.5) are holding cheaper after the negative lead-in from US tsys at the end of last week. Trading ranges have been narrow, with news flow light.

• Home Loan Values rose 1.5% m/m (estimate +2.0%) in February versus a revised -0.8% in January. “The value of new investor loans in February was 21.5% higher compared to a year ago. This made up over half of the growth in total new loan commitments over the past year.” (ABS)
• (Bloomberg) The Reserve Bank’s plan to use full allotment repo for open market operations (OMO) to implement its monetary policy, should curb funding volatility, according to Goldman Sachs in note. (See link)
• Cash US tsys have extended Friday’s post-payrolls cheapening in today’s Asia-Pac session, with benchmark yields 1-2bps higher.
• Looking Ahead, the market’s focus is likely on US CPI and March FOMC minutes on Wednesday and PPI on Thursday.
• Cash ACGBs are 6-8bps cheaper, with the AU-US 10-year yield differential 3bps lower at -24bps.
• Swap rates are 7-8bps higher, with the 3s10s curve steeper.
• The bills strip has bear-steepened, with pricing -1 to -7.
• RBA-dated OIS pricing is 1-5bps firmer across meetings, with Mar-25 leading. A cumulative 30bps of easing is priced by year-end.