Narrow Futures Trade, Curve Flatter

It was quite a narrow session for the Aussie bond space, which left YM +0.5 and XM +1.5 at the bell, with the latter sticking to the range established in early Sydney dealing and little attention paid to the latest round of Chinese macro data.

• Long end outperformance was at the fore in cash trade, with the curve bull flattening, while swaps lagged ACGBs from 5-Years to further out, resulting in some swap spread widening across most of the curve.
• Little in the way of market specific headline flow was seen, with JLMs mandated for TCV Nov '25 supply in the semi space after Friday's flagging, with record E/S surpluses looking for suitable deployment.
• Bill activity was dominated by IRM1/Z1 flattener flow during the Sydney morning.
• Weekly ABS payrolls data headlines locally on Tuesday.