Sitting Near Cheaps, Light Local Calendar, On US Tsys Watch

ACGBs are sitting cheaper on the day (YM -16.0 & XM -15.0) after April trade data fails to generate a domestic driver. Accordingly, local participants are likely to have been on headlines and US tsys watch through Sydney's afternoon.

• Cash US tsys are sitting slightly richer in Asia-Pac after paring early gains. However, ranges do remain narrow thus far.
• Cash ACGBs are just off session cheaps, 15-16bp weaker, with the AU-US 10-year yield differential 4bp higher at +19bp.
• Swap rates are 15bp higher on the day.
• The bills strip continues to bear steepen with pricing -2 to -18.
• RBA dated OIS is 5-16bp firmer for meetings beyond July, with early ’24 meetings leading.
• Australia’s major cities posted the largest annual rent increase on record in May, fueled by rapid population growth and a significant shortfall in property listings that highlight powerful inflation pressures in the economy, according to CoreLogic data. (link)
• The local calendar is light tomorrow. The next key data is on Tuesday with the release of Westpac Consumer Confidence (June) and NAB Business Confidence (May). Next week’s highlight undoubtedly will be the May Employment Report on Thursday.
• Later today sees Q1 GDP (Final) in the Euro Area, ahead of US Jobless Claims.