Light Bid For Futures At The Re-open

A very modest bid for Aussie bond futures to start the week, with YM unch. & XM +2.5.

• The positive Chinese news flow that we have outlined elsewhere i.e. cutting of interest rates for first time home buyers and confirmation that the gradual re-opening of Shanghai will start today, has dominated wider price action early this week, with U.S. Tsy futures marginally lower across the curve, while U.S. e-mini futures are better bid, rising by 0.3-0.7% as of typing.
• To recap, the Aussie bond futures curve actually managed to twist flatter during the final overnight session of last week, even as U.S. Tsys bear steepened, with YM closing at session lows while XM went out around the middle of its post-Sydney range.
• Monday’s domestic docket is non-existent, although Chinese monthly economic activity data and the latest round of PBoC MLF operations will provide some interest for participants.