Little Changed Vs. Settlement

The reversal of the risk-positive feel that was seen in early Monday trade allowed the curve to pullback from overnight steeps, as the continued U.S. fiscal impasse and worry surrounding the COVID situation in London, Germany and New York drove price action. YM +0.2, with XM +0.6 in early Sydney trade as a result.

• We have already seen the release of the latest round of weekly ANZ-Roy Morgan consumer confidence data, with the survey collators noting that "it was yet another upbeat result in the latest survey, with consumer confidence reaching new 2020 highs. Most sub-indices are now back at or even higher than the pre-pandemic level, with the confidence in future economic conditions at an 18-month high. The exception is current financial conditions, for which sentiment is close to 10% lower than mid-March and still below the neutral level of 100 (if only just)."
• Looking to the remainder of Tuesday's session, the local docket will see the release of the minutes from the RBA's December meeting, ABS payrolls data and an address from RBA's Jonathan Kearns, who is the Bank's Head of Financial Stability.
• Participants will pine the minutes for some broader context re: the potential for the RBA to extend its QE scheme, although the Governor has already outlined the broad brushstrokes that the RBA looks to re: the matter and the bar for anything in the way of a notable surprise within the release seems to be quite high.