Light Bid Observed

ACGBs have nudged a little higher amidst an uptick in U.S. Tsys, with weakness in e-minis on previously-flagged weakness on Walmart's earnings guidance (ahead of earnings due from other consumer staple large-caps such as Coca Cola later this week) providing support for the space amidst a lack of notable macro headline flow. Cash ACGBs run flat to 3.5bp richer across the curve, bull flattening. YM is +1.5 and XM is +3.5, with the latter operating just above its overnight high, while bills run 2 ticks richer to 3 ticks cheaper through the reds, twist flattening.

• ACGBs were little changed on the release of weekly ANZ-Roy Morgan consumer confidence (the sole domestic data release due today), which saw a slight improvement to 82.6 (vs. 81.8 prev.). When it comes to the details, the survey collators noted that “Increases in the expected ‘financial situation compared to a year ago’ and whether it is a ‘good time to buy a major household item’ were the main drivers of sentiment. Confidence, however, remained very weak and at levels last seen during the early stages of the COVID-19 pandemic.”