Just Off Best Levels

Aussie bonds are a little off session highs, catching a bid in the wake of soft Chinese economic activity data prints midway through the Sydney session. The move higher more than unwound the cheapening observed after the PBoC’s rate cuts & liquidity drain (fleshed out elsewhere), building on the initial richening impetus from Friday’s move in longer-dated U.S. Tsys. Cash ACGBs run 2.5-6.0bp richer across the curve, bull flattening. YM is +4.0 and XM is +6.0, through their respective overnight highs, while Bills run 2 to 4 ticks richer through the reds.

• There was little else of note re: drivers for ACGBs with U.S. cash Tsys sticking to a tight range, while there were no domestic data releases. Looking to issuance matters, the SAFA is set to price its May-32 bond today, while IFC launched a 3.5-Year A$ bond.
• Tuesday will see CBA household spending data for July hit the wires ahead of the release of minutes for the RBA’s August policy meeting.