Local Risk Eyed, Holidays Sap Liquidity

Steepening pressure evident to start the week, on the same drivers as we noted in the U.S. Tsy bullet, although there was little movement in futures vs. earlier bullets.

• Tomorrow's local risk events (the RBA decision and federal budget) remain at the forefront of participants' minds, even with the ACT, NSW, South Australia and Queensland observing regional holidays today. Cash ACGB markets were closed.
• Several press reports of note have done the rounds re: budget matters. The Australian has suggested that the government will bring forward A$7.5bn in infrastructure funding to this year's budget, in addition to lifting the country's debt ceiling. Elsewhere, the AFR has suggested that income tax cuts due to take effect in 2022 and 2024 will be rolled forwards.
• Bills unchanged to -2 through the reds.