RBA Headlines This Week

Aussie bond futures operate around late overnight levels shortly after the re-open, YM +0.5 & XM +1.5.

• To recap, futures squeezed higher during the second half of the final overnight session of last week, taking their cue from the U.S. Tsy space, which allowed them to unwind early post-Sydney weakness.
• Headlines from the political sphere seemed to dominate local news reports over the weekend, with the ruling coalition falling further behind the main opposition party in the latest Newspoll opinion poll (slipping on both a two-party-preferred basis and in the primary voting polls). PM Morrison’s preferred prime minister status also narrowed in the same poll.
• Domestic private sector credit data and Melbourne Institute inflation expectation readings are due on Monday, but focus is squarely on Tuesday’s RBA decision. The Bank is expected to announce the end of its QE programme, although market participants & RBA watchers are more interested in any tweaks to the Bank’s forward guidance passage re: interest rates (more on that in our full preview, which will be released later on Monday).