Futures Bounce On Broader Theme

The bid in the U.S. Tsy space and fall in oil futures provided some support for Aussie bond futures in after-hours trade, with YM +3.5 and XM +9.0 at the close.

• RBA Governor Lowe reintroduced the "at the earliest" phraseology re: its cash rate forward guidance in his post-meeting speech after removing it from the post-meeting statement, although the data dependence (and upside risks to the economic forecasts that will be produced in the August SoMP) that he underscored provided some fresh pressure to the space in late Sydney dealing, given market perceptions re: the local economy vs. the RBA. Elsewhere, the text of Lowe's post-meeting address contained the relatively sanguine wage/inflation outlook that we have become accustomed to, and came in the wake of the relatively hawkish statement that accompanied the Bank's latest monetary policy decision.
• A$1.0bn of ACGB 1.50% 21 June 2031 supply headlines the local docket on Wednesday.