NZ CPI Applies Some Knee-Jerk Pressure

Firmer than expected NZ CPI data from across the Tasman is weighing on Aussie bonds early on Tuesday, although the space is off of knee-jerk cheaps.

• YM trades -0.5 and XM is +3.0. This comes after the contracts initially firmed in post-Sydney dealing, driven by the well-documented rally in UK Gilts, before pulling off of best levels as U.S. Tsys traded away from richest levels of the session during NY hours.
• Wider cash ACGB trade sees the major benchmarks run flat to 3.5bp richer with the 10- to 12-Year zone outperforming.
• Bills run flat to -3 through the reds, bear flattening.
• Today’s domestic docket is headlined by the minutes covering the latest RBA decision (which saw the RBA deliver a “surprise” 25bp hike vs. the 50bp that was widely expected) and an appearance RBA Deputy Governor Bullock, with her address on in front of the AFIA annual conference to be on the topic of “Policymaking at the Reserve Bank.”
• We will also get the weekly ANZ-Roy Morgan consumer confidence reading.