Narrow Range, Twist Steepening, Confidence Data Highlights Tomorrow

ACGBs remain mixed (YM +1.0 & XM -2.5) after trading in a relatively narrow range in the Sydney session. In the absence of domestic data, local participants have been on headlines and US tsys watch.

• Tsys have been pressured in Asia-Pac dealing and sit a touch-off session lows. There has been no obvious headline driver for the move.
• Cash ACGBs are 2bp richer to 3bp cheaper with the AU-US 10-year yield differential +1bp at +21bp.
• The swap curve has twist steepened with rates -3bp to +4bp.
• Bills are richer across the strip with pricing +3 to +6, early reds leading.
• RBA dated OIS are 4-8bp softer across meetings beyond October with early to mid'24 leading.
• (AFR) Westpac’s Bill Evans will move on from his role of chief economist from January next year, to be replaced by RBA assistant governor Luci Ellis.
• Tomorrow the local calendar sees CBA Household Spending data for June, Westpac Consumer Sentiment for July, and NAB Business Confidence for June. Additionally, on Wednesday, market attention will be focused on Governor Lowe's speech, as investors hope to gain insights into the central bank's level of concern regarding inflation.
• The global calendar is relatively light today with US Wholesale Inventories and US Consumer Credit as the highlights.