Looking Through CPI

Aussie bond futures shrug off the domestic monthly CPI print for August, even with underlying inflation clearing the 6.0% level (the RBA currently looks for underlying inflation to hit 6.0% in Q422), while the headline print eased a touch, back to 6.8 Y/Y vs. the 7.0% seen in July.

• Participants haven’t really latched onto the release, as it is a new print and seemingly subject to quite a bit of statistical noise.
• YM +12.5 & XM +17.5 last, with the former seeing a very brief and shallow downtick around the data. 10s still outperform on the wider curve, with the major cash ACGB benchmarks running 9.5-18.0bp richer on the session. Bills run 2-15bp richer through the reds.
• Elsewhere, we also saw a 2.1% fall in the job vacancies print (which is measured in Q/Q terms), accompanied by an upward revision to the prior print.