No Reaction To Data

Futures have nudged lower since our previous bullet, with YM -4.0 and XM -0.5, looking through local data releases (a marginally softer than exp. private capex print for Q3, accompanied with negative revisions for Q2 and an uptick in 21/22 capex exp., as well as another uptick in ABS payrolls). The longer end of the cash ACGB curve is still a little richer on the day, clinging to the twist flattening impetus witnessed on the U.S. Tsy curve on Wednesday. Swap spreads & EFPs have consolidated after yesterday's aggressive narrowing from extremes. The tightening of spreads was seemingly facilitated by a combination of spill over from post-RBNZ rate market dynamics across the Tasman and a slight moderation in the usage of the RBA's SLF, with the latter pointing to slightly less worry re: collateral shortage in the ACGB space.