Election Called, Syndi Announced, Two-Way Flow To Start New Week

Overnight session lows in YM & held after the Sydney re-open, with a couple of bouts of directional flow then observed as we moved through Monday trade. That leaves YM +1.0 & XM -5.0 at typing, around the middle of their respective session ranges, with the wider dip in core FI markets pulling futures back from their respective Sydney peaks. There has been a parallel round of cheapening observed in the 10+-Year zone of the cash ACGB curve. Note that 10-Year ACGB yields have moved above 3.00% for the first time since ’15.

• Early Sydney trade saw some curve steepening kick in, likely surrounding the ACGB Nov-33 syndication, with little else in the way of other notable factors apparent to drive such a move.
• The AOFM launched the new ACGB Nov-33 via syndication, as expected, with initial price guidance in line to a touch wider than most exp. (when compared to sell-side fair value estimates). The syndication should price on Tuesday.
• Domestic weekend news was dominated by political matters, with PM Morrison declaring that the Federal Election will be held on 21 May.