RBA Day, Cheaper Overnight

YM and XM operate a little above their overnight lows in early Sydney trade, dealing -5.0 and -7.0, respectively, after wider core global FI market moves biased the space lower in post-Sydney dealing.

• Wider cash ACGBs have seen 5-7bp of cheapening across the curve, bear steepening.
• Bills run 5-12bp cheaper through the reds, also bear steepening.
• The latest RBA monetary policy decision provides the major regional risk event today. A 25bp hike is the consensus view of economists after last month’s slowing in the pace of tightening, while RBA dated OIS currently prices in ~32bp of tightening come the end of today’s meeting (See our full preview of that event here)
• Caixin manufacturing PMI out of China will present a point of interest from the wider Asia-Pac region, although the impact from the RBA decision is set to dominate.