Firmer & Flatter, Futures Away From Overnight Peaks

Aussie bond futures bull flattened overnight, with the BoE’s impact on the Gilt market in the driving seat.

• YM deals +14.5 & XM prints +17.0 in early Sydney trade, a little below late overnight levels after the contracts finished post-Sydney trade off of their respective peaks
• Bills have also bull flattened, running flat to 18bp richer through the reds, once again shifting a little lower in early Sydney trade. RBA dated OIS price in 43bp of tightening for next week’s decision, little changed vs. Wednesday levels, with terminal rate pricing in to ~4.15%, a little over 10bp lower on the day.
• Monthly job vacancies data and the ABS's update of its monthly CPI indicator (for July and August) headline the domestic docket on Thursday.
• Re: the latter, there could be plenty of noise in the data, with CBA warning that “each category has different measurement timings which could challenge the interpretation of headline figures, especially given recent moves in petrol, utility and childcare prices.”