Pressure Emerges

Aussie bonds are under some light pressure, with YM trading -1.0 & XM -5.0, through overnight lows. The supply of A$2.0bn worth of ACGB 21 May '32 has had little impact. Some are pointing to a potential spill-over from FI markets across the Tasman Sea, as 10-Year NZGB yield jumped to multi-month highs after the RBNZ's QE ops, with BBG flagging that "one big seller was behind all three nominal lines, indicating strong selling appetite from one large investor". In Australia, the RBA offered to buy A$1.0bn worth of semi-gov't bonds with maturities of Mar '25 to May '28.

• Cash ACGB space sees a degree of bear steepening, with SYCOM impetus driving the early move. Yields sit 0.1bp to +6.2bp across the curve as we type.
• Bills trade 1-3 ticks lower through the reds.
• Australian Q3 completed construction work comes out at the bottom of the hour.