Overnight Bid Holds

Aussie bonds look through much firmer than expected building approvals data and the quarterly NAB business survey (given that the monthly runs have already crossed), with YM & XM both printing +9.0 (the former is testing its post-Fed peak) as the feedthrough from the FOMC decision continues to support the space. Cash ACGBs are 7-9bp richer as the curve bull steepness. Broader headline flow remains limited thus far, leaving participants to dig down into Powell’s post-meeting communique. Bills run 3-14bp richer through the reds, with flattening momentum sustained. EFPs are biased a touch narrower, with the previously outlined move lower in RBA terminal cash rate pricing supporting that dynamic and the broader bid in ACGBs.