Curve A Touch Steeper On U.S. Lead

Aussie bond futures open around late NY levels, after closing at/just off their respective post-Sydney troughs, leaving YM -4.0 & XM -5.5. Note that YM has respected Thursday’s labour market report-inspired base thus far.

• There hasn’t been much in the way of meaningful local news flow to shape price action, which left U.S. Tsy dynamics at the fore overnight.
• Cash ACGBs run 2.5-6.5bp cheaper as the curve bear steepens.
• Swaps generally track degrees of movement in bonds, with EFPs little changed vs. late Sydney levels that prevailed on Thursday.
• Bills sit 1-5bp cheaper through the reds, bear steepening.
• RBA-dated OIS is little changed on the day, with the terminal rate pricing hovering at ~3.65%, and just over 10bp of cuts priced by year-end (from the current terminal cash rate pricing).
• The release of the weekly AOFM issuance slate presents the only point of reference on today’s local docket.