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Off Lows; Awaiting Fresh Impetus

AUSSIE BONDS

ACGBs have backed away from session lows made soon after the Sydney open as the bearish impetus from the overnight cheapening in Aussie bond futures has moderated, with Tsys happy to hold a tight range after the cash open (cash Tsys run flat to 1.0bp cheaper across the curve at writing), providing little by way of meaningful direction for the space.

  • Cash ACGBs run 5.0-7.5bp cheaper across the curve, with the 10- to 15-Year zone leading the way lower.
  • YM is -6.1 and XM is -7.9 with both contracts operating a little above fresh session lows after breaching their respective overnight bases earlier. EFPs are little changed, while Bills run 5 to 8 ticks cheaper through the reds, bear flattening.

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