Overnight Underperformance Holds, AU/U.S. Tighteners Eyed

Aussie bonds looked through local matters, with the underperformance witnessed during overnight hours holding, while the space was subjected to the broader chop witnessed and outlined elsewhere. YM -1.0, XM -4.5 at the close, with growing sell-side interest in Aussie/U.S. 10-Year tighteners evident.

• There was no follow through as the RBA failed to step in to buy ACGB Apr '24 to enforce its 3-Year yield target, despite speculation that it may have done so today. Perhaps the RBA will choose to do so tomorrow alongside the Bank's scheduled longer dated ACGB purchases (assuming there isn't a sizeable rally in ACGBs over that timeframe).
• Local Q4 wage data was firmer than expected, although still limited in a historical sense, while soft completed construction work provided a negative start for Q4 GDP partials.
• As mentioned, RBA ACGB purchases will headline the local docket on Thursday, with Q4 CapEx data also due.