Early Bid Holds, Local Data Mixed

Aussie bonds squeezed higher in early Sydney trade, with a lack of meaningful headline flow evident. This came after an early show lower in which YM had a brief and shallow look below its overnight base.

• That leaves YM at unchanged levels and XM +3.5. Wider cash ACGB trade sees the major benchmarks running flat to 4.5bp richer, with broader bull flattening observed. EFPs continue their shunt wider, with both the 3- & 10-Year measures running over 5bp wider, as the 3-/10-Year box steepens.
• Bills sit 1-4 cheaper through the reds, also off early session cheaps.
• Local data was mixed, with building approvals falling, although expectations were for a larger fall, while housing finance data was notably softer than expected, providing larger than expected falls across the board.