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Futures Off Overnight Lows, CPI Eyed

AUSSIE BONDS

ACGB futures sit a little above late overnight levels as we move towards Australian Q2 CPI (due for release in ~40 mins) as U.S. e-mini futures have edged away from post-settlement highs, with a flat start in U.S. Tsys and a lack of initial market reaction to confirmation of the Biden-Xi phone call providing little direction for Aussie bonds. Cash ACGBs run flat to 2bp richer across the curve, bull flattening, while YM and XM are unch. and +1.5, respectively. Bills run flat to 2 ticks cheaper through the reds.

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