Futures Hold Most Of Overnight Gains Early This Week

A downtick in U.S. Tsy futures is applying some very modest pressure to Aussie bond futures in early dealing this week, with the previously outlined Russia-Ukraine & Sino-U.S. matters at the fore when it comes to weekend news flow. This leaves YM +10.5 & XM +13.0, a touch below their late overnight session levels (and shy of overnight session highs observed pre-weekend), after recession-related worry in both Europe & the U.S. supported core global FI markets on Friday. Bills run 7-13bp richer through the reds.

• The weekend’s domestic news flow was headlined by Australian PM Albanese once again pushing for China to rollback trade sanctions imposed on Australia.
• Monday’s domestic docket is headlined by A$300mn of ACGB Mar-47 supply. When it comes to AOFM operational matters, a quick reminder that late on Friday the AOFM noted that its “Chief Executive Officer, Mr Rob Nicholl, will finish at the AOFM around mid-September. He is being nominated by the Australian Government as Executive Director at the International Monetary Fund. The Australian Treasury will be conducting a recruitment process to appoint a new Chief Executive Officer for the AOFM.”