Looking Through Local Data

The space has looked through the much stronger than expected local preliminary retail sales data, with the curve twist steepening on the day and swaps narrowing across most of the curve. YM +1.0, XM -1.0.

• A quick look at the details of the retail sales release revealed the expected COVID-related divergence across the states, with the ABS noting that "Victoria (21%) led the rises, with November seeing the first full month of trade following the easing of coronavirus restrictions in that state. Excluding the Victorian rise, monthly turnover rose 2.7% in seasonally adjusted terms. South Australia, which saw a three day period of restrictions in November, saw a flat result. A rise in food retailing in South Australia was offset by falls in most other industries."