Retail Sales And State Of The Economy Speech Due

Aussie bond futures sit a little shy of their respective overnight peaks after taking the lead from U.S. Tsys in post-Sydney dealing, with Fed matters dominating in the second half of overnight trade. YM last +9.0 while XM is +4.5, a touch above late overnight session levels. Bills run 6-13bp richer through the reds, again generally a touch firmer than their late overnight levels.

• Retail sales data for the month of June provides the major domestic economic release of note on Thursday (BBG median sits at +0.5 M/M vs. the +0.9% seen in May), with terms of trade data also due.
• We also note that Treasurer Chalmers will deliver his state of the economy speech later today. The Treasury is set to mark its GDP forecasts lower, to 3.75% for FY21/22, versus the previous forecast of 4.25%. While its growth expectations for the current financial year will be lowered to 3.00% from 3.50%, with GDP growth expectations for the following year to be set at 2.00% vs. the previous 2.50%.