Off Lows, Weak Local housing Data Ignored

The previously outlined bounce in U.S. Tsys seems to have aided Aussie bonds, with the space unwinding the bulk of the early Sydney move lower, leaving YM -1.0 & XM -2.0 at typing. Broader cash ACGB trade sees the longer end of the curve running ~2.5bp cheaper on the session. EFPs remain wider on the day, with Bills running 1-6bp cheaper through the reds. Softer than expected housing finance data provide the latest signal re: a cooling property market, although there wasn’t anything in the way of meaningful market reaction post-data. Participants look to the release of next week’s AOFM issuance slate, which will cross at the top of the hour.