Little Changed, Light Local Calendar, Heavy Data Calendar On Monday

ACGBs (YM flat & XM +1.0) are slightly richer after dealing in relatively narrow ranges in today’s Sydney session. Today’s data drop (Judo Bank PMI Mfg and CoreLogic House Prices) failed to be market-moving.

• Cash tsys are dealing flat to 1bp richer in today’s Asia-Pac session after Fed Williams said in a Fireside Chat after the US market close that he doesn’t believe the Fed needs to tighten monetary policy further. He added that he expects to cut interest rates later this year.
• Cash ACGBs are flat to 1bp richer, with the AU-US 10-year yield differential 2bps higher at -12bps.
• ACGB May-34 went smoothly with more demand present. The cover ratio moved higher to 3.6437x from 3.1125x at the February auction. The weighted average yield printed 1.28bps through prevailing mids (per Yieldbroker).
• Swap rates are flat to 1-2bps lower.
• The bills strip is little changed.
• RBA-dated OIS pricing is little changed across meetings. A cumulative 37bps of easing is priced by year-end.
• On Monday, the local calendar sees the Melbourne Institute Inflation Gauge, Q4 Inventories, Q4 Company Operating Profits, ANZ-Indeed Job Advertisements and Building Approvals data.