Open Richer Ahead Of Busy Data Week

ACGBs are slightly richer (YM +2.0 & XM +0.5) with a firming in U.S. Tsys in trading ahead of the weekend. 2-year and 10-year U.S. Tsy were respectively 7bp and 5bp richer after the bell. U.S. Tsys had opened higher in NY trade on Friday after another retreat in European bank stocks but gave back part of the gains as U.S. equity indices managed a late rally.

• Cash ACGBs open 2-3bp stronger with the AU-US 10-year yield differential at -18bp.
• Swaps open with rates 2-4bp richer and the 3s10s curve 2bp steeper.
• Bills strip pricing +1 to +4bp through the reds.
• RBA dated OIS opens with pricing flat to 3bp softer across meetings.
• Australia’s centre-left Labor Party looks set to form government in NSW, said ABC. Labor pledged an end to privatization and to ease cost-of-living pressures.
• After a light few days, the calendar heats up again this week with the scheduled release of February Retail Sales (Tue) and Monthly CPI (Wed).
• The global calendar is relatively light until later in the week when Euro Area CPI (Mar) and US PCE deflator (Feb) are released on Friday. Core measures will be the focus given they remain far too high despite some cooling in headlines inflation.