Flattening Impulse Maintained

Aussie bonds flattened in sympathy with the overnight session move in futures/Thursday’s move in U.S. Tsys, albeit following the wider gyrations observed in core global FI markets during Sydney dealing, leaving YM -9.0 and XM -0.5 into the bell, off of worst levels of the session, with cross-market gyrations and UK fiscal matters at the fore.

• Cash ACGB trade sees 9bp of cheapening to 1.5bp richening across the major banchmarks, with a pivot around 10s.
• A solid round of ACGB Apr-27 supply was noted, while next week’s AOFM issuance slate is somewhat vanilla.
• EFPs are incrementally wider on the session, with the 3-/10-Year box marginally flatter.
• Bills print 7-13bp cheaper through the reds, IRH3 through IRH4 leading the cheapening there.
• RBA dated OIS indicated a terminal rate of just over 4.05, ~!0bp or so higher on the day.
• Looking ahead, next week’s local docket is headlined by the monthly labour market reading (Thursday), with the minutes from the RBA’s most recent monetary policy decision (Tuesday) also due.