Richer, Mid-Range, Eurozone CPI and US PCE Deflator Due

ACGBs (YM +4.0 & XM +3.5) sit in the middle of the Sydney range. There hasn’t been much in the way of catalysts outside the previously mentioned strong to in-line AU capex and private sector credit data, and mixed China PMIs.

• US tsys sit flat to 1bp lower across benchmarks in Asia-Pac trade.
• Cash ACGBs are 4bp richer, with the AU-US 10-year yield differential 1bp lower at -8bp.
• Swap rates are 4-5bp lower.
• The bills strip bear-flattens, with pricing flat to +7.
• RBA-dated OIS pricing is flat to 6bp softer across meetings.
• Tomorrow the local calendar sees CoreLogic House Prices (Aug) and Housing Finance (Jul).
• Flash CPI from the Eurozone provides the highlight in Europe, after upside surprises to German and Spanish inflation yesterday.
• Further out we have July PCE deflator, MNI Chicago PMI, Challenger Job Cuts and weekly Jobless Claims data, along with Fedspeak from Bostic and Collins. US Non-Farm Payrolls data is due on Friday.