Helped Lower By U.S. FI

The early flattening has now more than reversed, with the curve a touch steeper on the day as impetus from the U.S. Tsy space spills over, even though the move in U.S. cash Tsys represents a catch up after Monday's market holiday. YM -0.5, XM -1.0.

• The minutes from the RBA's most recent monetary policy decision didn't provide anything in the way of notable market moving impetus. Some key snippets from the release can be found below:
• "The Board assessed that the bond purchase program had helped to lower interest rates and had contributed to a lower exchange rate than otherwise. Australia's government bond markets continued to function well and further purchases were not expected to be a source of market dysfunction"…"If the Bank were to cease bond purchases in April, it was likely that there would be unwelcome significant upward pressure on the exchange rate."
• "Later in the year, the Board would need to consider whether to shift the focus of the yield target from the April 2024 bond to the November 2024 bond. In considering this issue, members would give close attention to the flow of economic data and the outlook for inflation and employment."
• "Members observed that conditions in the housing market had been more resilient than expected, which had assisted the economic recovery"…"Members noted that there were few signs of a deterioration in lending standards; however, lending standards would be monitored closely in the period ahead."