Slightly Cheaper, Eyes On RBA Review Release

ACGBs are slightly stronger (YM +1.0 & XM +1.0) after richening 2-4bp after the downside surprise for Q1 NZ CPI. US Tsys were modestly weaker in NY trading following the release of the Federal Reserve's Beige Book which did not appear to impact the market significantly. Notably, however, the report noted several districts reported that banks had tightened lending standards, which could be seen as a potential alternative to raising interest rates, as suggested by Fed Chair Powell.

• Cash ACGBs are 1bp richer with the AU-US 10-year yield differential +1bp at -9bp.
• Swap rates are 2-3bp richer with the 3s10s curve 1bp flatter.
• Bills pricing is flat to -2 with late whites the weakest.
• RBA dated OIS opened with pricing flat to 3bp firmer.
• Q1 NAB Business Confidence is scheduled for release today. Confidence was -1 in Q4.
• Nonetheless, the main focus of attention for the day is expected to be the release of 'An RBA Fit For The Future', the findings of an independent review of the Reserve Bank of Australia, which will be presented by Treasurer Chalmers this morning. This will be followed by a briefing by RBA Governor Lowe on the same topic, scheduled for 0300 BST.