Slightly Cheaper Despite Modest Gains By US Tsys On Friday

ACGBs (YM -2.0 & XM -2.0) are slightly cheaper after a subdued weekly end for US tsys.

• US tsys held modestly richer after the bell on Friday, with US 2-year and 10-year yields declining 3-4bps after some modest data-driven volatility.
• Building permits disappointed in July at 1396k (cons 1425k) after a mildly upward revised 1454k (1446k). University of Michigan inflation expectations were a tenth stronger than expected for both 1Y and 5-10Y measures but remained in recent ranges.
• US equities rebounded from an initial dip, to advance for the seventh consecutive day, with the S&P 500 0.2% higher.
• The KC Fed hosted Jackson Hole economic symposium "Reassessing the Effectiveness and Transmission of Monetary Policy," which will be held Aug. 22-24, with Fed Chairman Powell speaking at 1000ET Friday Morning.
• Gold rallied to an all-time high of over $2500 per ounce.
• Cash ACGBs are 1-2bps cheaper, with the AU-US 10-year yield differential at +6bps.
• Swap rates are 1bp higher.
• The bills strip has bear-steepened, with pricing -1 to -3.
• RBA-dated OIS pricing is little changed. A cumulative 18bps of easing is priced by year-end.
• Today, the local calendar is empty, ahead of the RBA Minutes of August Policy Meeting tomorrow.