Roll Flow Dominates

Aussie bond futures firmed a little during early Sydney dealing, adding to overnight gains, YM +1.1 & XM +3.4 at typing, with roll activity headlining (the YM & XM rolls both traded to the left).

• Some trans-Tasman impetus in the form of a firmer NZGB space may have provided some early support. Still, the space is off richest levels given the softer cover ratio and modest pricing of the weighted average yield through pre-auction levels (0.13bp per Yieldbroker) in the latest round of ACGB Nov '31 supply.
• The latest address from RBA Assistant Governor Kent didn't provide much in the way of market changing information.
• Elsewhere, we learnt that Melbourne's COVID restrictions would be loosened a little in the coming days.
• Finally, the latest round of Westpac consumer confidence saw another fall, with the survey collator noting that "May can be mainly attributed to a combination of a statistical correction following a very strong surge in April to an eleven-year high, and some disappointment around the Budget given high expectations leading into the announcement. The latest fall in June is almost certainly due to concerns around the two-week lockdown in Melbourne. The survey was conducted during the first week of the lockdown."
• There is little in the way of tier 1 data evident on the local docket on Thursday.