Firmer

Aussie bonds continuing to squeeze higher here but we haven’t seen much in the way of idiosyncratic news flow to drive the move, with some early weakness in some of the major Asia-Pac tech equity benchmarks seemingly providing the early bid, although that move has faded from extremes. Note that volumes have been on the lighter side across most of the core global FI space, although the moves from the intraday trough to peak are non-negligible in the ACGB space. That leaves YM +6.5 & XM +6.0 at typing, while wider cash ACGB trade sees a fairly parallel level of richening across the wider curve. Aussie 10s have tightened by ~7bp vs. U.S. 10s, with that spread now below +55bp. IR trade sees the space running 2-7bp richer through the reds, driven by the bid in bonds.