Light Bull Flattening Early On

YM +1.2 and XM +3.0, a touch better bid vs. late overnight levels. Bills run -1 to +2 through the reds. The 10- 12-Year zone of the curve leads the bid in wider cash ACGB trade, richening by ~3bp.

• Note that the curve seems to be more in tune with the bull flattening observed on European core FI curves on Monday, as opposed to the bear steepening seen in U.S. Tsys.
• Tuesday’s domestic data docket will be headlined by CBA household spending, monthly Westpac consumer confidence, NAB business confidence and weekly ANZ-Roy Morgan consumer confidence, with A$100mn of Feb-50 index-linked paper due to be auctioned by the AOFM as well.
• While today’s data may not be particularly market moving when considering the datapoints in isolation, the overall mix of business & consumer views will of course be worth assessing.
• Participants also await Thursday’s labour market report.