Flattening Holds Despite Westpac's RBA Call Tweak

Aussie bond futures promptly retraced their blip lower which came on the pushback in Westpac's RBA easing call from to Nov from Oct (note this comes after the likes of Terry McCrann and WSJ RBA watcher Glynn went against the idea of a move at the Oct meeting last week). YM trades +1.0, with XM +2.5 at typing as the cash ACGB curve bull flattens vs. settlement, largely reflecting the moves seen in futures during SYCOM hours. The RBA refrained from ACGB purchases today, which wasn't much of a surprise given current yield levels.

• Victoria eased its social distancing restrictions ahead of schedule, incl. lifting Melbourne's curfew.
• Elsewhere, we have also seen confirmation that the Australian government's airline support schemes will be extended. The Australian government also pared back its expectations for mining and energy export revenue for the current FY.
• The heavy, above task ACGB issuance schedule seen FYtD has allowed the AOFM to pull back on issuance this week (in relative as opposed to historical terms), with the major round of coupon supply scheduled for Wednesday, in the form of A$2.0bn worth of ACGB 1.00% 21 December 2030 issuance. This will be followed up by a seldom seen A$500mn tap of ACGB 3.25% 21 June 2039 on Friday.