Futures Look Through Overnight Highs

The bullish flattening of the U.S. Tsy curve supported Aussie bond futures in overnight dealing, with the contracts going out just shy of their respective post-Sydney peaks. The space has extended its bid in early Sydney trade, leaving YM +4.0 & XM +7.5 shortly after the Sydney re-open, with both contracts looking through their overnight high. Bills run flat to +2 through the reds.

• The NAB business and Westpac consumer confidence surveys are due for release today, with the recent move lower in the latter overshooting what we have seen in the former, which you would probably expect against the current inflationary/cost of living squeeze backdrop. Note that the wage components of the NAB survey will probably garner the bulk of the attention when it comes to these releases. Elsewhere, A$100mn of indexed-linked Aug-40 supply is due from the AOFM.