Domestic & Offshore Matters Aid The bid

Aussie bonds initially drew support from the impetus in U.S. Tsys, with the AOFM's issuance update also providing a bid, unwinding the overnight/early Sydney steepening theme. The typical weekly bond issuance notional guidance was lowered owing to the well ahead of task run rate (which was expected), while no imminent ACGB Nov '32 syndication and confirmation that particular line will represent the only new launch during the remainder of the current FY also provided support.

• YM +1.0, XM +1.5 at the bell, with the curve bull flattening and swaps mostly tighter across the curve.
• Pricing of A$200mn worth of ADB 10s and A$150mn worth of Mercedes Benz 3s provided nothing in the way on tangible pressure for the space.
• The monthly labour market report, more timely ABS weekly payrolls data, monthly consumer confidence reading, flash retail sales and resumption of ACGB issuance provide the focal points of next week's local docket.