Sits Flat, RBA Review Fails To Move The Market

ACGBs sit flat after the formal release of the review of the RBA and the widely accepted recommendations fail to provide any reason for market participants to change views on the near-term outlook for interest rates. The decline in Q1 NAB Business Confidence also failed to provide a domestic catalyst for the market. US Tsys have been trading little changed versus the NY close in Asia-Pac trade.

• Cash ACGBs are unchanged on the day with the AU-US 10-year yield differential +2bp at -8bp.
• Swap rates are 2-3bp lower with EFPs 2bp tighter.
• Bills strip twist flattens with pricing -4 to flat.
• RBA dated OIS pricing is 2-6bp firmer across meetings with 27bp of cumulative tightening priced by August.
• With no domestic data on the calendar, the local participants will likely be guided by US Tsys as they navigate a raft of second-tier data releases. US earnings season results and Fedspeak are also likely in play.