Flat Start As Light After-Market Flattening Consolidates

Aussie bond futures trade marginally above late overnight levels observed at the backend of last week, after some light bear flattening was observed on the futures curve (in sympathy to the twist flattening seen in U.S. Tsys on Friday). That leaves YM -2.0 & XM at unchanged levels during early Monday dealing. Bills run 1-4bp cheaper through the reds. There isn’t anything of note on the local/regional dockets on Monday, while the observance of a public holiday in the U.S. may limit wider liquidity. That will mean Monday’s session will largely be a case of headline watching and adjusting to weekend news flow, which included the reduction in COVID-related restrictions in the Chinese cities of Shanghai & Beijing, meanwhile, the Chinese authorities also outlined a raft of economic support measures for Shanghai.