Off Lows

It didn't take long for a bid to come back into play, as the follow through from yesterday's RBA decision continues to be observed, reversing the early Sydney trans-Tasman driven softening, which came on the back of the larger than expected downtick in NZ unemployment. The internals surrounding the latest round of ACGB Nov-31 supply weren't the strongest in recent memory (as fleshed out in an earlier bullet), but the auction still passed smoothly enough in the grander scheme of things, which has provided another likely aid for the bid. YM +4.5 & XM +7.5 at typing, although both remain a little short of their respective overnight highs. 12s lead the rally in the cash ACGB space. The IR strip sees the contracts run little changed to 13bp richer through the reds, with IRU2 & IRZ2 leading the bid there.