Holding Firm

Aussie bond futures have failed to work their way out of the ranges established early on in Sydney trade, with YM +1.0 and XM +6.0. The latter has struggled to extend meaningfully through the recent highs, but bulls seemingly remain in control there.

• The presence of the latest round of scheduled RBA ACGB purchases may have provided some support when compared to U.S. Tsys.
• Headline flow remains light, with a decent pipeline of A$ issuance building (particular focus has fallen on sustainability/social bonds, with onshore and offshore names active there).
• ANZ Job ads data was strong (once again), with the survey collator noting that "ANZ Job Ads hit 12 straight months of gains in May, and is now consistent with an unemployment rate of around 5%... The Victorian lockdown is unlikely to derail the state's labour market recovery. Even if we see some employment losses in June, as long as restrictions start easing from 11 June as currently planned, workers should be reinstated or find new jobs quite quickly, given the underlying strength in the labour market."
• The monthly NAB business survey headlines the local docket on Tuesday.