Little Net Movement

The space has struggled to garner much in the way of lasting traction when it comes to movement away from Friday’s settlement levels, even with U.S. Tsys starting the new week on the backfoot, signs of continued strength re: the domestic labour market (as evidenced by the earlier ANZ job ads print) and another move higher in Melbourne Institute inflation expectations (with the headline Y/Y metric moving to the highest level observed since ’08) noted. YM -0.5 and XM -1.5 at typing, with the 7-Year zone underperforming on the cash ACGB curve as the major benchmarks cheapen by 0.5-2.5bp.

• Bills run flat to 2 ticks lower through the reds,
• Note that political uncertainty remains in the air, with the opposition Labour Party leading in the polls ahead of the upcoming Federal Election (set to be held in May), although it would seem that the ruling coalition is chipping away at Labour’s lead.
• Looking ahead, tomorrow’s RBA decision provides the highlight of the local docket this week (Expect our full preview of that event to hit during the London morning).