Futures bull flattened overnight, driven by the weakness in equities/bid in U.S. Tsys. Early Sydney trade sees YM +8.0 and XM +12.5, operating a touch shy of their respective overnight peaks. The bill strip runs 3-9bp richer through the reds, bull flattening.
- Labour market data headlines the domestic docket today, although shouldn’t be a gamechanger for RBA policy settings given the well-documented tight nature and continued outperformance vs. RBA expectations in recent times. Note that the IB strip currently prices a year end cash rate of ~2.70%, 7-8bp below Wednesday’s late Sydney levels, owing to the wider risk-off dynamic observed after the Sydney close.