Richer But Off Best Levels, US PPI Data Later Today

ACGBs (YM +6.0 & XM +3.0) sit richer, with a steepening bias, but are off the Sydney session’s best levels. There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined housing loan commitments data.

• The shift away from session highs therefore seems to be more closely tied to US tsys activities during today's Asia-Pacific session. Benchmark yields are trading flat to 2bps higher.
• Cash ACGBs are 3-5bps richer, with the AU-US 10-year yield differential 1bp wider at +10bps.
• Swap rates are 2-4bps lower, with the 3s10s curve steeper.
• The bills strip has maintained its bull-flattened, with pricing +1 to +7.
• RBA-dated OIS pricing is 3-5bps softer for meetings beyond May.
• (AFR) The next chairman of the $206bn Future Fund will come from outside the organisation, and Treasurer Jim Chalmers is understood to be willing to delay an appointment to find the right leader. (See link)
• On Monday, the local calendar sees the MI Inflation Gauge, Job Advertisements and CBA Household Spending data.
• TCV has mandated NAB, UBS and Westpac for a new AUD 5.25% 15 September 2038 fixed rate benchmark bond, according to UBS. The transaction is expected to launch and price soon, subject to market conditions.