Richer, Narrow Ranges, A Typical Pre-Payrolls Friday

ACGBs (YM +3.0 & XM +4.0) are richer after dealing in narrow ranges in today’s Sydney session. Today’s data drop was second tier and so has provided little impetus for the market, which has firmed in line with US tsys. US tsys extended its post-FOMC rally. US tsy futures are dealing little changed, ahead of US Non-Farm Payrolls later today. There is no cash trading for US tsys in Asia today due to a holiday in Japan.

• Home-Loan Values rose 3.1% m/m (estimate +1.0%) in March versus a revised +1.9% in February. Investor Loan rose 3.8% m/m versus a revised +2.5% in February.
• Judo Bank and S&P Global PMIs printed: Services fell to 53.6 from 54.4 in March; Composite fell to 53 from 53.3 in March.
• Cash ACGBs are 3-4bps richer with the AU-US 10-year yield differential at -17bps.
• Swap rates are 3-4bps lower.
• The bills strip bull-flattened, with pricing flat to +3.
• RBA-dated OIS pricing is 1-2bps softer for meetings beyond September.
• RBA Policy Decision is on Tuesday.
• (MarketWatch) With inflation proving sticky, the Reserve Bank of Australia doesn't have the option of simply holding interest rates higher for longer, with further increases now looking likely, a leading forecaster says. (See link)