Chinese Support For Property Sector Weighs
Aussie bonds are biased lower to start the week, with a notable round of property market support out of China providing some weight. Local headline flow has been limited since Friday’s Sydney close, leaving the aforementioned headlines out of China at the fore.
- Cash ACGBs run ~5-6bp cheaper across the curve as a result, with YM and XM threatening a clean break below their respective overnight session bases.
- Bills run 3-12bp cheaper through the reds, with the back end of the whites and front end of the reds leading the losses. RBA dated OIS prices a terminal cash rate of ~3.90%, marginally higher on the day.
- We don’t have anything in the way of notable domestic releases until the minutes from the latest RBA monetary policy meeting cross on Tuesday.