Off Best Levels

Bond futures sit a little shy of their Sydney session peaks, after reaction to Thursday’s key central bank meetings drove a bid in the early rounds of Friday trade. There hasn’t been anything in the way of meaningful reaction to firmer than expected Caixin services PMI data out of China. YM is +13.0, while XM is +16.0. The 10- to 12-Year zone continues to lead the bid on the wider ACGB curve. Also note that next week’s AOFM issuance slate sees a continued A$1.5bn run rate for ACGB issuance, albeit over 2 auctions (ACGB May-28 & Nov-33), as opposed to this week’s 3. Participants are now looking ahead to the U.S. NFP print, which will cross in the overnight session.