Little Changed, Digests RBA Review Ahead Of Gov. Lowe Briefing

ACGBs are trading slightly weaker (YM +1.0 & XM +0.5) as investors absorb the 51 recommendations from the independent review of the RBA. The review, which has just been presented by Treasurer Chalmers, confirmed the establishment of a dual board structure, as widely reported by local media over recent weeks.

• One of the other key takeaways for the markets is that the RBA's inflation target of 2-3% is recommended to be maintained. However, the review suggests a shift in focus towards returning inflation to the mid-point of the target range, rather than averaging it out over time.
• RBA Governor Lowe is slated to give a briefing on the same topic at the top of the hour (0300 BST).
• Q1 NAB Confidence, just released, falls to -4 from -1. There has been little market reaction to the data.
• Cash ACGBs are 1bp richer with the AU-US 10-year yield differential +1bp at -9bp.
• Swap rates are 4bp lower with EFPs 3bp tighter.
• Bills strip has twist flattened with pricing -1 to +3.
• RBA dated OIS is flat to 3bp firmer across meetings with 24bp of cumulative tightening priced by August.