Little Changed, China GDP Eyed

ACGBs start Sydney trade with a modest twist steepening bias, operating within -/+1bp of their respective Monday closes, pivoting around 5s. This comes after a tight overnight session for futures, with YM flat early on and XM -1.0.

• Monday’s closure of cash Tsys is limiting broader steer as the new trading day gets underway. For what it’s worth, Tsy futures were marginally softer during Monday’s curtailed trading session, while German FI saw some modest twist steepening and the Gilt curve bear flattened.
• Bills sit unchanged to -2 through the reds, while RBA dated OIS pricing is essentially flat on the day.
• We have seen a marginal uptick in the weekly ANZ-Roy Morgan consumer confidence release (still comfortably below the 100 mark), although it is the monthly Westpac consumer sentiment reading (due later today) that garners more market attention.
• Chinese GDP data presents the highlight of the Asia-Pac docket, with markets generally looking through any soft Chinese data releases in recent times given the reopening drive in the country. This seemingly presents some asymmetric risks when it comes to market reaction to potential outcomes. Spill over from pre-BoJ setup in JGBs will also be eyed.