Mid-Range, Looking Through Data

Aussie bonds have generally looked through the local data slate, which saw firmer than expected retail sales (with the recent volatile streak in the series continuing) and a marginal beat in private sector credit, both of which covered the month of January. Elsewhere, Q4 current account data revealed a much wider than expected surplus, alongside a modest downside surprise in the net export contribution to GDP. ACGBs now sit around the middle of their respective Sydney ranges, leaving YM +4.0 & XM +2.5, while wider cash trade sees the major benchmarks running 2-4bp richer as the curve bull steepens a little. EFPs are flat to a little wider, with the 3-/10-Year box steepening.

• Local headline flow has seen the government outline a higher tax bracket on earnings for pension pots that are over A$3mn in size (from FY25/26), in a bid to make the system more sustainable.