Lower At Start Of Friday Trade

The space sits cheaper vs. settlement in early Sydney dealing, with similar cheapening in the U.S. Tsy space applying pressure overnight. YM -0.5, XM -4.0, with the latter operating a little above its overnight low after it failed to extend on recent lows.

• The latest round of local PMI releases had no impact on the market, with February's flash IHS Markit PMIs registering relatively stable rates of expansion vs. Jan. IHS Markit noted that "a key positive from the flash PMI data for Australia is the strongest pace of job creation since late-2018. This was a response not only to sustained growth of new orders, but also signs of capacity pressures returning and greater confidence in the future outlook. On a less positive note, growth in the economy has been accompanied by stronger inflationary pressures. Input costs rose at the sharpest pace in almost five years of data collection, with output price inflation also quickening." Still, the headline readings were muddied by supply chain disruptions, with the collator noting that "supplier lead times lengthened to the greatest extent in three months in February."
• On the semi front, WATC has mandated for a new benchmark Oct '30 line, which is expected to launch next week.
• Focus on Friday rolls to local retail sales data, A$600mn of ACGB 0.25% 21 November 2025 supply and the release of the AOFM's weekly issuance slate.