Choppy Within A Tight Range

We saw the RBA step in to enforce its 3-Year ACGB yield target, which added some support to the Aussie bond space, allowing YM and XM to print at unchanged levels at one point, fully unwinding the overnight steepening. Weakness then crept into the space as we moved towards the close, as YM closed -0.5 and XM finished 3.5 ticks lower. It may have been linked to the results surrounding the RBAs longer dated ACGB purchase ops, although there wasn't any glaring signs of weakness there.

• Local data saw a mix of firmer than expected exports and softer than expected imports provide a much wider than expected trade surplus for the month of October, while the latest round of housing finance data came in on the softer side of exp.
• Bills finished unchanged to -1 through the reds. IRH1/M1 saw some light flattener flow early on.
• Friday will see A$1.5bn worth of ACGB 0.25% 21 November 2025 supply the release of the weekly AOFM issuance schedule, and monthly retail sales data.