Looking Through Vanilla AOFM Supply Slate

Aussie bonds look through the release of a fairly generic weekly AOFM issuance slate, which sees a modest A$100mn uptick in the rate of conventional ACGB supply (to A$1.3bn from this week’s A$1.2bn) and doesn’t present a meaningful burden for the market. The lead from U.S. Tsys, which have taken another leg richer in recent trade, provides the dominant factor thus far. XM futures hover just below their overnight highs, with a fairly parallel ~6bp richening shift seen through 12s, while the bid beyond that point is a little more modest, resulting in some bull steepening of the wider curve.