Little Changed, Global Bonds Yields Higher, CPI Monthly Due

ACGBs are little changed (YM +1.0 & XM -0.05) after US tsys traded weaker after the bell, near session lows following a strong open. No specific driver for early support. Early month-end buying and a reaction to Canadian CPI were likely contributing factors. Canadian core measures cooled more than expected, with the median measure printing below 4% for the first time since February 2022.

• Early strength was short-lived as US tsys reacted to stronger-than-expected US data (May durable goods orders, April home prices, May new home sales, and June consumer confidence).
• Cash ACGBs opened flat to 1bp richer with the AU-US 10-year yield differential -3bp at 17bp.
• Swap rates opened flat to 2bp lower with the 3s10s curve steeper.
• Bills are little changed with pricing +1 to -1.
• RBA dated OIS opened mixed with pricing flat to 1bp softer out to December and 1-2bp firmer beyond.
• The local calendar heats up today with the release of May’s CPI Monthly. BBG consensus expects a print of 6.1% y/y, after the unexpected jump to 6.8% in April.
• (AFR) - One of these seven people could be our next RBA governor. (See link)
• The AOFM plans to sell today A$300mn of the 1.75% 21 June 2051 bond.