Pare Losses After RBA Holds Cash Rate Steady

TYM3 deals at 115-18, +0-03+, with a 0-07+ range observed on volume of ~91k.

• Cash tsys sit little changed across the major benchmarks.
• Tsys pared losses after the RBA held the cash rate steady at 3.6%. The RBA board watered down previously hawkish forward guidance as the bank noted in the final paragraph that some further tightening "may" be needed, at the previous meeting the board had noted further tightening will be needed. A subsequent rally in ACGB spilled over.
• Earlier in the session after an initial muted start tsys were marginally pressured as the USD came off session lows and US equity futures and regional equities softened.
• Spillover from a poorly received 10 Year JGB auction saw losses extended a touch, a block seller of TY (3,240 lots) also weighed.
• Early today Fedspeak from Governor Cook noted that the disinflationary process is underway, but there is more work to do. She also noted that continuing tightness in the labour market is still producing an inflationary impulse.
• Eurozone PPI data headlines an otherwise thin European session. Further out we have Factory Orders and JOLTS Job Opening. Fedspeak from Fed Governor Cook will cross.