Holding Cheaper In Narrow Pre-NFP Trade

Aussie bond futures operate off of worst levels into the bell, with weakness in wider equity markets limiting downside impetus during Sydney hours leaving overnight session losses intact. The proximity to the latest U.S. NFP print also limited price action.

• YM & XM both trade -7.0, off of worst levels, after the former had a look through its overnight base.
• Wider cash ACGB trade sees the major benchmarks running 5-7bp cheaper, with the 5- to 10-Year zone leading the weakness.
• TCV mandated banks to issue a new Sep-36 bond, which will launch and price “in the near future,” with hedging flows in XM futures expected around pricing, as the line will be of benchmark size.
• Bills run 3-8bp cheaper through the reds, with RBA terminal rate price nudging higher on the day, with dated OIS showing a peak of 3.85%.
• The latest RBA FSR came and went without too much to note, with the same holding true for a vanilla weekly AOFM issuance slate.
• There is nothing in the way of major economic releases on Monday’s domestic docket.