Dealing Mixed, Mid-Range, RBA Minutes Tomorrow

ACGBs are sitting mixed (YM -1.0 & XM +1.0) and in the middle of the Sydney session range. Without domestic data, local participants have likely been on headlines and US tsys watch.

• On balance, China's Q2 GDP print, and mixed June activity data, are likely to see calls for policy support continue. Q2 GDP was as expected at +0.8% q/q, but the y/y number softer at +6.3%, versus +7.1% expected. However, the data didn’t appear to have any lasting impact on ACGBs.
• Cash ACGBs are flat to 1bp richer.
• The 3s10s swap curve has twist flattened with rates 1bp lower to 2bp higher. EFPs are 1bp wider.
• The bills strip is cheaper with pricing -1 to -4.
• RBA-dated OIS pricing is little changed across meetings.
• Tomorrow sees the release of the RBA Minutes for the July meeting. The market will be looking for more details about the July pause.
• The AOFM has selected Structuring Advisors to assist with establishing the Australian Sovereign Green Bond program. The AOFM and the Treasury will be working with National Australia Bank and UBS. The first green bond issuance will occur in mid-2024, with the Australian Government Green Bond Framework to be released well in advance.