Dragged Higher On Wider Flows

The previously touted wider move in risk sentiment has provided support to the space, allowing YM and XM to pierce their respective post-Sydney peaks.

• YM last deals +13.5, with XM +9.05, while cash ACGB trade sees the longer end of the cash curve sit ~8bp richer on the day.
• The 3-/10-Year EFP box has twist steepened.
• There has been a lack of idiosyncratic domestic drivers evident thus far.
• Weekly ANZ-Roy Morgan consumer confidence nudged lower again in the latest week, with those servicing debt linked to their home continuing to be more pessimistic than renters and those that have paid off their mortgage (no real surprise given the interest rate outlook and inflation backdrop in Australia), while CBA household spending data revealed a 3.8% M/M drop in April.
• The major domestic data (monthly NAB business survey and Q1 retail sales ex-inflation) will hit in ~40 minutes time.