Lowe & Labour Market Report On Deck

Futures ran steeper overnight, leaving YM -5.5 and XM -9.0 at the close, on/very close to after-hours lows.

• The focal point of today's domestic docket will be RBA Governor Lowe's latest address, which is titled "From Recovery to Expansion." Participants will be keen to see if Lowe adds any further clues re: the direction of the decisions that are due to be made at the Bank's July meeting. A reminder that most do not expect the RBA's yield targeting measure to be rolled over to ACGB Nov '24 from Apr '24. In terms of the broader bond buying scheme , the sell-side was previously split between a fresh round of A$50bn or A$100bn worth of purchases, but there has been a move in views towards a more fluid, flexible approach since the Bank's June decision. Today will also bring the release of the latest monthly labour market report and a scheduled round of ACGB purchases from the RBA. Trans-Tasman impetus may also become apparent in the wake of the latest round of NZ GDP data.