Sharply Richer, At Bests, RBA Minutes & Employment Data Next Week

ACGBs are holding sharply higher (YM +9.0 & XM +7.0), near session highs, as US tsys regain losses seen early in the Asia-Pac session. There hasn’t been much domestic news flow other than the previously outlined appointment of RBA Deputy Governor Bullock as the new RBA governor when incumbent Philip Lowe’s term expires in September.

• DJ's Glynn writes the appointment of Michele Bullock represents continuity for financial markets, but it will also bring her career background in financial stability to the fore with household budgets teetering near collapse due to soaring interest rates. (See link)
• AFR's Joye writes that Bullock is the right choice for RBA at a critical time in the inflation fight (See link)
• Cash ACGBs are 7-10bp richer with the AU-US 10-year yield differential unchanged at +21bp.
• Swap rates are 7-9bp lower with the 3s10s curve steeper.
• The bill strip has bull flattened with pricing +4 to +11.
• RBA dated OIS is 4-5bp softer for meetings beyond November.
• Next week the local calendar sees the RBA Minutes for the July Meeting on Tuesday and NAB Business Confidence (Q2) and Employment data on Thursday.
• The AOFM has announced that it plans to sell A$800mn of the 3.5% December 2034 bond on Wednesday.