Plenty Of Sources Of Support

YM +0.5, XM +3.0 in what has been relatively sedate Sydney trade. Very light pressure crept into XM on the back of the previously flagged uptick in U.S. equity index futures, although the negative RBA-adjusted net supply, month-end index extensions and spill over from yesterday's softer domestic CPI data seemingly continue to provide an underlying level of support, meaning the downtick was both short and modest.

• In local news, Treasurer Frydenberg noted that the country's jobless rate will "need to have a four in front of it" to generate the required level of wage growth and inflation, with the Treasury's estimate of NAIRU now between 4.5-5.0% (remember that RBA Governor Lowe couldn't discount the suggestion that NAIRU may start with a 3 when questioned on the matter during a recent appearance).
• Q1 PPI and the latest monthly round of private sector credit data headline the local docket on Friday. We will also see A$1.0bn of ACGB 1.50% 21 June 2031 supply and the release of the AOFM's weekly issuance slate.