Cheaper, Subdued Session, Q4 GDP Tomorrow

ACGBs (YM -1.0 & XM -0.5) sit slightly cheaper after dealing in narrow ranges during today’s Sydney session. Once again, the domestic data drop (Q4 Net Exports, Current Account Balance and Government Consumption & Capex) failed to move the market as it awaits Fed Chairman Powell's policy testimony to Congress Wed-Thu and the Payrolls Report Friday.

• Cash US tsys are dealing little changed in today's Asia-Pac session after yesterday's bear-flattening. Tuesday’s US data calendar includes S&P Final PMIs, ISM Services and Factory Orders.
• (AFR) A sharp decline in the number of Australians travelling overseas and a large fall in imports of consumer goods like toys, clothes, cars and appliances may have prevented the economy from contracting in December. (See link)
• Cash ACGBs are flat to 1bp cheaper, with the AU-US 10-year yield differential 1bp lower at -11bps.
• Swap rates are 1bp higher to 1bp lower, with the 3s10s curve flatter.
• The bills pricing is -1 to -2.
• RBA-dated OIS pricing is little changed.
• Tomorrow, the local calendar sees Q4 GDP.
• Tomorrow, the AOFM plans to sell A$800mn of 2.75% Nov-29 bond.