Firmer Alongside Core Global FI, No Surprises From The RBA

Aussie bonds have firmed a little in the wake of the latest RBA monetary policy decision, which saw the Bank leave its monetary policy settings unchanged as expected. At first skim it was very matter of fact from the RBA, as it tipped its hat to the knowns going into the decision & pointed to a more upbeat central economic scenario, with no real surprises seen through the text. The Bank highlighted the recent positive developments in both the labour market and in terms of Q4 economic growth, although noted that a reduction in spare capacity that will result in the required level of wage growth to meet the Bank's inflation target will take some time. The Bank also noted that lending standards in the housing market will be "monitored carefully." The Bank's forward guidance was left as was.

• Early Sydney trade saw some chop with participants adjusting to the largely U.S.-centric news flow in play since the end of Sydney dealing last week, before the space ground higher alongside global core FI counterparts.
• The latest ANZ jobs ads reading was firm and was accompanied by upward revisions to the already firm prior reading.
• YM +1.5, XM +4.5 as we move into the latter rounds of Sydney trade, with the cash curve twist flattening. A$1.2bn of ACGB 1.00% 21 December 2030 supply headlines the local docket on Wednesday.