Firmer Alongside U.S. Tsys

The bid in U.S. Tsys seems to be allowing the ACGB space to continue to firm after the post-data moves fleshed out earlier, leaving YM -1.0 & XM -1.5 at typing, with a lack of meaningful domestic/idiosyncratic news flow observed post-data. Wider cash ACGBs run ~1bp cheaper across the curve.

• A$ issuance has picked up today, with offshore names active in the 3- to 4-Year zone of the curve.
• EFPs are 2-3bp tighter on the day, suggesting swap flows may have aided the move away from lows.
• In the short end Bills are now 1-2bp firmer on the day, more than reversing overnight/early Sydney losses. Meanwhile RBA dated OIS pricing comes in a touch when it comes to the terminal cash rate, although operates in familiar territory, once again showing below the 3.90% mark.