Little Changed, Investors On Sidelines Ahead Of US Payrolls Later Today

ACGBs (YM flat & XM +0.5) are little changed after dealing in relatively narrow ranges so far in the Sydney session. With the domestic calendar empty, local participants appear to be content to sit on the sidelines ahead of the release of US Non-Farm Payrolls later today.

• Bloomberg consensus sees payrolls growth of 200k for February but two-month revisions will likely be watched particularly closely. Please find the MNI's Preview here.
• (MNI) - BoC Governor Tiff Macklem told MNI he could adjust policy rapidly if economic conditions shift abruptly, although his base-case projection suggests conditions for lower borrowing costs might not emerge until later this year. "What nimble means is if the situation changes rapidly, we may need to respond rapidly," he said in an interview at the central bank's Ottawa headquarters after holding the key rate at 5% on Wednesday. At the rate decision, he said it was too soon to consider a cut given upside inflation risks. (See link)
• Cash US tsys are dealing ~1bp cheaper in today’s Asia-Pac session after yesterday’s bull-steepening. News flow has been light today.
• Cash ACGBs are 1bp richer, with the AU-US 10-year yield differential 2bbps higher at -9bps.
• Swap rates are 1bp lower.
• The bills strip pricing is flat to +2.
• RBA-dated OIS pricing is little changed. A cumulative 43bps of easing is priced by year-end.