Lockdown Vs. Better Data

YM -1.0, XM -1.0. Both contracts have recovered from worst levels of the day after the latter had a brief look below early Sydney/overnight lows on the back of stronger than consensus Q1 GDP readings for Australia, although the sell-side had largely adjusted to the view that risks were skewed to the upside re: the release in the wake of the partials prints, limiting the follow through and stickiness of the move. Both the Q/Q & Y/Y readings were within the range of estimates provided in the BBG survey.

• The 7-day extension of the COVID-related lockdown covering the Melbourne area (although the regional Victoria area may not see its restrictions extended) was also noted, and may have provided some incremental support during the second half of trade.
• Still, participants continue to discuss the prospects for the tapering of RBA bond purchases in the wake of the tweaks to yesterday's post-meeting statement.
• Elsewhere, Bills trade unchanged through the reds, with a post-fix bout of buying activity noted in IRM1 after 3-Month BBSW fixed at the lowest level witnessed since late March.
• A reminder that Deputy Governor Debelle & Assistant Governor Bullock will appear before the Senate Economics Legislation Committee (Estimates) this evening. The final monthly trade balance and retail sales readings headline the local docket tomorrow.