Futures Hold Overnight Losses

YM and XM operate a little above their respective overnight bases after recovering from worst levels alongside wider core global FI markets, with the previously alluded to (UK Gilt & European fiscal) matters front and centre in post-Sydney trade.

• That leaves the former -5.0 & the latter -8.0, while wider cash ACGB trade sees 5-8bp of cheapening across the curve, with the 10- to 15-Year zone leading the weakness.
• Bills run flat to 5bp cheaper through the reds, with RBA terminal rate pricing just above 3.90%, in line with levels seen late on Monday.
• Today’s local docket consists of household spending data from CBA, as well as the monthly NAB business survey and Westpac consumer confidence readings.
• The resilience of household spending has been noted by the RBA, with the Bank deeming this a key risk to the economic outlook during the months ahead, as the lagged impact of its swift tightening begins to bite.
• When it comes to the NAB & Westpac surveys, the gap between the two has never been wider, with consumer confidence plummeting and business confidence remaining robust.
• Also note that there will be A$100mn of Aug-40 I/L paper on offer from the AOFM.