Remains Cheaper But Subdued Trading, Empty Data Calendar

In future roll-impacted dealings, ACGBs (YM -5.8 & XM -4.7) remain cheaper but are at the Sydney session’s best levels. There have been no data or events today, with RBA Governor Bullock speaking tomorrow. The other key focal point for the market this week will be employment data on Thursday.

• US tsys are holding cheaper in the Asia-Pac session today, however, ranges remain narrow, and the downtick has not yet followed through. Friday's post-NFP lows remain well intact. Little meaningful macro newsflow has crossed today. Cash tsys sit 1-2bps cheaper across the major benchmarks, and light bear steepening is apparent.
• Cash ACGBs are 5bps cheaper, with the AU-US 10-year yield differential 4bps tighter at +11bps.
• Swap rates are 3-4bps higher, with EFPs 1-2bps narrower.
• The bills strip pricing -1 to -6, with late reds leading.
• RBA-dated OIS pricing is 1-5bps firmer for meetings beyond May’24, with late 2024 leading.
• (AFR) Pendal’s Amy Xie Patrick disagrees with the view of many market pundits that RBA Governor Michele Bullock appears to be more hawkish than predecessor Philip Lowe. “The way that market reacted to some of her recent speeches [shows the] thinking that there will be a more hawkish RBA going forward.” (See link)