Little Changed, Narrow Ranges, Awaiting US CPI

In roll-impacted dealing, ACGBs (YM -1.0 & XM +1.2) are little changed as global bond markets await US CPI later today. No domestic data has crossed so far today, with CBA Household Spending due later. There was also no nominal bond auction today.

• In light of that, local participants have likely monitored developments in US tsys and JGBs in the Asia-Pac session. JGBs are slightly richer, extending yesterday's post-5-year supply rally. The 5-year auction saw solid demand metrics. US tsys, on the other hand, have been pressured so far in the Asia-Pac session, although the ranges have been narrow. US tsys are currently dealing flat to 1bp cheaper.
• The cash ACGB curve has twist-flattened, with yields from 1bp lower to 1bp higher. The AU-US 10-year yield differential is 1bp lower at -13bp.
• Swap rates are 1bp lower to 2bp higher, with the 3s10s curve flatter.
• The bills strip is cheaper, with pricing -1 to -3.
• RBA-dated OIS pricing is flat to 2bp firmer across meetings.