Cheaper, US Tsy Yields Higher After JOLTS Data, May-41 Supply Due

ACGBs (YM -4.0 & XM -5.5) are cheaper after US tsys twist-steepened, pivoting at the 5s, with yields finishing 2bps lower to 5bps higher. The retreat in US tsys was on high volume as Europe returned from an extended Easter holiday weekend. Oil prices at YTD highs also weighed.

• JOLTS job openings were slightly higher than expected at 8.756m (cons 8.73m) in Feb after a downward revised 8.748m (initial 8.86m) in Jan.
• Fed speakers supported short-end rates on the day. Fed Mester ('24 voter but retiring in June) won't rule out a rate cut in June, while Fed Daly said three rate cuts in 2024 is still a "reasonable baseline".
• Today’s US Data Calendar sees ADP Jobs, S&P Global US Services/Composite PMIs, ISM Services and multiple Fed Speakers. The focus, however, is on Friday's March Employment Report.
• Cash ACGBs are 3-5bps cheaper, with the AU-US 10-year yield differential 2bps higher at -23bps.
• Swap rates are 3-4bps higher.
• The bills strip has bear-steepened, with pricing -1 to -5.
• RBA-dated OIS pricing is flat to 3bps firmer across meetings. A cumulative 34bps of easing is priced by year-end.
• Today, the local calendar is empty, apart from the AOFM’s planned sale of A$300mn of 2.75% May-41 bond. The AOFM also plans to sell A$800mn of the 2.50% May-30 bond on Friday.