Off Lows

The ebbs and flows in the U.S. election saw futures correct a chunk of their SYCOM losses, with YM settling -1.0 and XM -2.0, with the cash curve steepening (but off extremes) as swaps tightened after yesterday's post-RBA swap spread widening.

• AU 10s widened vs. US 10s on the latest rally.
• Bills finished unchanged through the reds, with a fresh all-time low 3-Month BBSW fix.
• Markets looked through the marginally stronger than exp. retail sales data and ABS payroll data which revealed that "between the week ending 3 October 2020 and the week ending 17 October 2020: payroll jobs decreased by 0.8%, compared to a decrease of 0.9% in the previous fortnight" and "total wages paid decreased by 2.1%, compared to a decrease of 3.1% in the previous fortnight." Over a longer horizon, "between the week ending 14 March and the week ending 17 October 2020: payroll jobs decreased by 4.4%" and "total wages decreased by 5.1%."
• Local trade balance data is due tomorrow. Elsewhere, Thursday will also see the RBA's newly adopted form of QE deployed for the first time.