Marginally Firmer After Two-Way Overnight Session

Aussie bond futures operate in close proximity to yesterday’s settlement levels, with YM unchanged and XM +1.0 after a contained two-way overnight session, driven by the fluctuations in wider core global FI markets (weakness in the London morning, followed by a bit of a recovery during the NY session). Futures have ticked lower in early Sydney dealing. Meanwhile, wider cash ACGBS are ~1bp richer across the curve.

• Bills are 1-7bp richer through the reds, bull flattening, while RBA dated OIS is little changed, showing 18bp of tightening for next month’s meeting, alongside a terminal cash rate of just over 3.90%.
• Weekly ANZ Roy Morgan consumer confidence data provides the only point on a very limited domestic docket on Tuesday. That will leave focus on matters across the wider Asia-Pac region, including Tokyo CPI, moves in Chinese assets and the return of Tokyo market participants (and therefore JGBs) after the elongated weekend in Japan.
• Fed Chair Powell’s Tuesday address provides the nearest meaningful macro risk event.