Little Changed At Re-Open

Aussie bond futures finished overnight dealing a little cheaper, with the swings in U.S. Tsys dominating price action ahead of the weekend. That leaves YM -3.5 & XM -4.0 vs. their respective settlement levels shortly after the Sydney re-open, largely in line with late overnight levels. Bills sit +1 to -3 through the reds.

• Looking ahead, there isn’t anything in the way of meaningful domestic data to assess on Monday, although some trans-Tasman impetus may be derived from the latest NZ CPI report. Expectations are that NZ headline inflation topped +7.0% Y/Y (BBG est. is +7.1%) in Q2. This print will be one of the key data signals ahead of the RBNZ’s August MPS, when the Bank will revisit its economic forecasts. Note that the Reserve Bank will publish its preferred gauge of core prices (the sectoral factor model) later in the day.
• There is plenty of RBA speak on tap during the remainder of this week, and we will cover what to lookout for later in the session/over the coming days.