Little Changed

Futures stuck to narrow ranges overnight, giving back a small portion of the post-NFP rally. They have seen a very light relief bid in early Sydney dealing, leaving YM unch. and XM -0.5, a touch above late overnight levels.

• The AU/U.S. 10-Year yield spread continues to struggle re: making a decisive move below 5bp, but most of the sell-side remain constructive on the AU space in relative terms. Re: the cross-market outlook, Westpac have stressed that "in a world in which yield is a scarce commodity, Australia continues to exhibit excellent reward-for-risk characteristics. Over time that will attract investor inflows. S&P's decision to remove the Negative Outlook from the sovereign's AAA rating will provide further support, as will the negative net bond issuance in coming months."
• The monthly NAB business survey headlines the local docket on Tuesday.