Firmer Again

YM has recently extended to fresh session highs, experiencing a clean break through its overnight peak, last dealing +5.5, with XM experiencing a similar move, last +7.0. The bullish flattening has pulled back from extremes after the softer than expected Chinese economic activity data provided a bid for the space, more than reversing the modest cheapening that came on the back of the PBoC’s easing moves. When it comes to cash trade, benchmark ACGB yields sit 3.5-7.0bp richer across the curve, with a parallel shift in yields beyond the 7-Year point. EFPs are narrower on the day, with the 3-/10-Year box steepening. Bills run 2-3bp richer through the reds.

• There hasn’t been much in the way of idiosyncrasies to note for the space, outside of issuance matters, with initial guidance surrounding SAFA’s tap of its May-32 bond, which is expected to price today, as well as IFC launching a 3.5-Year A$ bond.