Cheaper, Narrow Ranges, Local Calendar Light Until Jobs Data On Thursday

ACGBs (YM -5.0 & XM -6.0) are holding cheaper as trading remains confined within relatively narrow ranges during today's Sydney session. Given the light local economic calendar until Thursday's release of the March Employment Report, market participants have been closely monitoring movements in US tsy yields for guidance.

• Cash US tsys are dealing ~1bp cheaper in today’s Asia-Pac session after yesterday’s bear-steepening.
• Fed Chair Powell, Vice Chair Philip Jefferson and Richmond Fed President Thomas Barkin are scheduled to speak later today.
• (AFR) The Australian dollar hit a five-month low on Tuesday after more upbeat US economic data cast further doubt on whether the Federal Reserve can embark on interest rate cuts any time soon. (See link)
• Cash ACGBs are 4-6bps cheaper, with the AU-US 10-year yield differential +2bps at -29bps.
• Swap rates are 3-6bps higher, with the 3s10s curve steeper.
• The bills strip has bear-steepened, with pricing -1 to -5.
• RBA-dated OIS pricing is 3-4bps firmer for early 2025 meetings. A cumulative 18bps of easing is priced by year-end.
• Tomorrow, the local calendar sees the Westpac Leading Index, ahead of the Employment Report for March on Thursday.
• Tomorrow, the AOFM plans to sell A$800mn of 3% Nov-33 bond.