Nudging Away From Best Levels

Aussie bonds have thus far failed to better richest levels of the session, which came as a product of the vol. that surrounded the re-open of U.S. futures, with the previously alluded to turnaround in fortunes for Hong Kong’s Hang Seng Index seemingly allowing the space to nudge further away from best levels. That leaves YM at unchanged levels and XM +2.0, while the major cash ACGB benchmarks are little changed to 3bp richer, with the early flattening impulse intact. EFPs are now little changed to a touch wider on the day, suggesting payside swap flow may have aided the move away from extremes.