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Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

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Futures have held to tight ranges with the extension of the Sydney lockdown through August 28 meeting broader expectations. Sydney's construction industry will be allowed to restart (outside of the COVID hotspot regions), albeit with restrictions in place. NSW has also introduced supplementary payments for those that are unemployed, aided by Commonwealth funding. NSW's new COVID case saw an uptick to 177 new cases.

  • YM +0.5 with XM +2.5 at typing, with the latter capped by its overnight high thus far.
  • Cash ACGB trade sees some bull flattening, with the long end running 3.0bp richer on the day at typing.
  • The space hasn't shown much, if any, reaction to the uptick in China's A50 index futures.
  • Domestic Q2 CPI data is due at the bottom of the hour. As we flagged earlier, this release isn't expected to be a gamechanger for the RBA (owing to the transitory inflation narrative), but it may still impact intraday price action.