Narrow In Sydney

The Aussie bond space looked through the release of the minutes of the RBA's December monetary policy decision, with YM finishing at unchanged levels and XM +0.4. There was always a high bar for the release re: its potential to be market moving, with the Bank affirming recent rhetoric from the RBA Governor surrounding the evolution of its QE scheme: "Members agreed to keep the size of the bond purchase program under review. At its future meetings, the Board will closely monitor the effects of the bond purchases on the economy and on market functioning, as well as the evolving outlook for jobs and inflation. The Board is prepared to do more if necessary."

• The space never threatened the overnight steeps after the reversal of the risk-positive feel that was seen in early Monday trade allowed the curve to pullback, as the continued U.S. fiscal impasse and worry surrounding the COVID situation in London and New York drove price action during NY hours.
• Elsewhere, Sino-Aussie tensions remain at the forefront, at least locally.
• Flash PMI data and the Westpac leading index headline the Australian docket on Wednesday.