Lack Of Conviction

Futures continue to meander through Sydney trade, with participants lacking anything in the way of meaningful conviction. Across the Tasman, the latest RBNZ decision saw the Bank deliver the widely expected 50bp rate hike (see earlier bullets for more details/colour on the matter), although there wasn’t anything much in the way of surprises when it came to the tone of the accompanying statement, leaving participants with little to trade off as we work towards the U.S. CPI print. YM deals -0.5, with XM +2.0 at typing. A similar degree of twist flattening has been observed on the wider cash ACGB curve, with 5s acting as the pivot point and the 10- to 12-Year zone providing the firmest point on the curve.