Marginally Firmer To Start

Aussie bonds have firmed at the margin on Thursday, leaning on a late bid in U.S. Tsys for support. That leaves YM +1.0 & XM +2.0, with the former a touch shy of its overnight high, while the latter has backed off from its early Sydney peak after breaching its own overnight high. Cash ACGBs are 1.5-2.5bp richer across the curve, with the 7- to 12-Year zone leading after 10s outperformed on the U.S. Tsy curve on Wednesday, aided by a well-received round of 10-Year Tsy supply.

• Bills are +1 to -1 through the reds, with RBA-dated OIS pricing little changed early today (~20bp of tightening showing for next month, alongside a terminal cash rate of just under 4.00%)
• Local headline flow has been fairly subdued since the Sydney close, with continued focus on Tuesday’s RBA decision and subsequent adjustments to cash rate path expectations. Note that RBA Governor Lowe will appear in front of the House of Representatives Standing Committee on Economics next Friday.
• Elsewhere, the latest NAB-SEEK labour market report noted that “job ads rose 2.8% in January. The increase followed 7 consecutive months of declines and may suggest some stabilisation after a rapid retreat from May 2022 highs. Despite the falls into the end of 2022, Seek Job Ads remain 39% higher than pre-pandemic December 2019 levels, indicative of overall continuing strong labour demand.”
• There isn’t anything of note on the local docket on Thursday.