Flatter, Though Contained, Familiar Matters Eyed

XM saw a brief blip higher, to new highs of the day, on the back of the previously flagged Westpac view re: RBA QE extension, although the move faded, with YM closing +0.2 & XM +2.1 based on the H1 contracts. Cash ACGB trade saw the curve flatten, with swaps widening vs. ACGBs across the curve.

• Residual roll volume dominated outside of the Westpac-inspired XM move, given the lack of headline news flow after the re-open, while the weekend headline-related swings in the broader risk tone dictated price action early on.
• Local weekend news flow focused on Sino-Aussie tensions, with matters surrounding Australian coal exports and restrictions of Chinese purchases of Australian assets dominating, although both these matters are very familiar.
• Looking to Tuesday, the local docket will see the release of the minutes from the RBA's December meeting, the weekly ANZ consumer confidence print and an address from RBA's Jonathan Kearns, who is the RBA's Head of Financial Stability.