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Edging Higher Ahead Of Lowe

AUSSIE BONDS

Aussie bonds have nudged higher, building on their earlier richening after catching up to the overnight bid in futures, with Tsys providing little direction for the space, having held a tight range after the cash open (cash Tsys run 0.5bp cheaper to 0.5bp richer across the curve at writing) amidst a lack of notable macro headline drivers.

  • Cash ACGBs run 8.5-10.0bp richer across the curve, with 10s leading the way higher.
  • YM is +8.5, having failed to meaningfully break above its overnight high so far, while XM is +9.0, through its own overnight peak. EFPs are mixed, with 3-Year EFP narrower and 10-Year EFP wider, while Bills run flat to 7 ticks richer through the reds.
  • Aussie trade data for July will cross in ~15 mins, with RBA Gov. Lowe’s speech due later in the session.

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