Rolls Drive Activity & Interest

Aussie bonds also held to a tight range, with emphasis falling on activity in the rolls, as participants suggested selling of the rolls i.e. rolling longs, provided support to the Z0 legs early on in Sydney trade, with the major futures contracts pressing through their respective SYCOM highs as a result. YMZ0 last +1.6, with XM +3.9, as the curve flattened vs. Sydney closing levels, although the contracts are off their respective session highs.

• On the news front, participants continue to look to Sino-Aussie tensions, although the developments have had no meaningful impact on prices.
• Elsewhere, the weekend saw Victoria unveil a $3.0bn business support package.
• Bills sit unchanged to +1 through the reds.
• Tuesday sees the release of the minutes from the RBA's most recent monetary policy decision, Q2 house price data and the latest weekly ANZ-Roy Morgan consumer confidence reading.