Firmer, But Off Best Levels

The Australian curve bull flattened in the wake of the move seen in U.S. Tsys after Sydney closed on Monday, with little in the way of idiosyncratic headline flow noted, outside of a handful of cases of the UK's more aggressive COVID strain being detected in one of Western Australia's travel quarantine hotels. This came after Australian PM Morrison expressed hope that border restrictions between Victoria and NSW could be eased soon.

• YM closed +0.5, while XM was +3.5 at the bell, with the latter back from best levels, finishing just above 99.000.
• The cash ACGB curve also flattened, while swap spreads were mostly wider on the day.
• The latest round of ANZ job ads data was firm but had little impact on the broader space.
• There is nothing of note on the local docket on Wednesday.