Post-NFP Pressure Lingers

Aussie bond futures finished the final overnight session of last week a little above worst levels, with post-NFP gyrations in U.S. Tsys in the driving seat. The early downtick in U.S. Tsy futures as Asia digests the post-NFP moves and weekend news flow (flagged in an earlier bullet) has seen Aussie bond futures move back towards their own overnight cheaps, with YM -4.0 and XM -7.0 as of typing. Bills sit -4 to -7 through the reds.

• The previously outlined meeting of the Australian & Chinese Foreign Ministers revealed 4 Chinese requitements re: improving bilateral ties between the two nations. Australian Foreign Minister Wong stated that Australia seeks to resolve issues calmly and consistently under the Comprehensive Strategic Partnership and in accordance with Australia's national interests. Australian concerns around a range of bilateral, regional, trade and consular issues were also raised. The meeting was a first step in terms of aiming to improve relations between both countries, which had deteriorated in recent years.
• There isn’t much in the way of meaningful domestic risk events to flag on Monday, which will leave wider market gyrations and headline flow at the fore at the start of the new week.