Little Reaction To ACGB Auction, RBA Ops & "Simply Stunning" NAB Biz. Conf. Survey

Cash ACGB yields are off steeps and last trade -0.1bp to +3.4bp across the curve, the long end still underperforms. YM trades -0.5, while XM has sits -3.0 (slightly off lows) as we type. Bills trade unch. to -1 tick through the reds. The space has shown little reaction to local data, debt supply & RBA QE ops.

• Australian retail sales fell 0.5% Q/Q in Q1 vs. BBG forecast of a 0.4% decline. On a monthly basis, retail sales rose 1.3% M/M, marginally missing the 1.4% estimate. Elsewhere, NAB Business Confidence surged to 32 from 24, while Business Conditions rose to 26 from 17, with both indices marking new record highs. NAB described the results of the survey as "simply stunning."
• The AOFM sold A$1.0bn of ACGB 21 Dec '30, drawing bid/cover ratio of 2.46x (prev. 2.53x). The size of the auction was small by historical standard, with A$1.2bn of the bond allotted at the previous offering.
• The RBA offered to buy A$2.0bn of ACGBs with maturities of Nov '24 to May '28, excluding Apr '26.