Pares Gains In Asia As RBA Hikes 25bps

TYM3 deals at 114-17, +0-01, a touch off the base of the 0-06+ range on volume of ~99k.

• Cash tsys sit little changed from Mondays closing levels across the major benchmarks.
• Cross market spillover from ACGBs as the RBA unexpectedly raised the cash rate 25bps saw tsys pressured to session lows before marginally paring losses.
• Earlier in the session Asia-Pac participants faded Monday’s cheapening perhaps using the opportunity to exit short positions/enter fresh long positions.
• After the early richening, in the lead up to the RBAs monetary policy decision narrow ranges were observed with little follow through on moves.
• Flash European Manufacturing PMIs and CPI headline the European session today. Further out we have JOLTS Job opening, Factory and Durable Goods Orders.