Overnight Lows In Futures Probed, But Not Meaningfully Broken

Aussie bond futures continue to operate around their respective overnight lows, with a shallow look through the overnight base in YM futures failing to generate a meaningful extension, while XM has edged away from its own overnight/early Sydney lows. The former sits -4.0, while the latter is -6.5. Wider cash ACGB trade sees 3.5 to 6.5bp of cheapening, with the overnight/early Sydney bear steepening impulse remaining in play. RBA-dated OIS continues to operate around early Sydney levels (see earlier bullet for key reference points on the strip). Local headline flow remains limited, with news of a 40bp 3-Year fixed rate mortgage rate cut from CBA doing the rounds at present.