Off Steeps, RBA Buying & Labour Market Data Eyed

YM unch., XM +2.5 in early Sydney trade, with the retracement from overnight steeps aided by a similar, albeit more pronounced move in U.S. Tsys. The move wasn't data driven and may simply reflect the notion that the recent cheapening/steepening, evident across the bulk of major global FI markets, has simply gone too far, too fast (at least in terms of recent history). While the stronger than expected U.S. data releases had some suggesting that fiscal support may not need to be quite as aggressive as touted by the Biden admin.

• Locally, focus moves to the latest monthly labour report, due for release in a couple of hours time. BBG consensus looks for a 30K lift in the number employed and a 0.1ppt fall in the unemployment rate, to 6.5%.
• Elsewhere, some speculation has done the rounds re: the potential for the RBA to step in and enforce its 3-Year yield target with the recent round of cheapening leaving yields of ACGB Apr '24 around the levels that triggered the most recent round of purchases to enforce the Bank's target. As a reminder, the RBA is set to conduct a scheduled round of bond purchases today.