Slightly Richer, Dovish FOMC Minutes Deliver Modest Gains For US Tsys

ACGBs (YM +2.0 & XM +0.5) are slightly stronger following modest gains from US tsys overnight.

• The BLS reported that US payroll growth in the year to March was preliminarily revised down by 818k or 68k per month.
• The July FOMC minutes signaled that participants were eyeing a cut in September, with "several" seeing it as "plausible" to cut already in July. There weren't many clues in the minutes on future monetary policy beyond that, with no mention of a potential >25bp cut.
• The US 2-year yield declined 5bps to 3.93%, after reaching a session low of 3.88% after the FOMC minutes. The long-end reaction was more muted with 10-year yields finishing little changed at 3.80%.
• The US$16 billion 20-year auction went smoothly and cleared close to the prevailing market levels.
• Australian Judo Bank PMIs for August (prelim) printed: Mfg rises to 48.7 from 47.5 in July; Services rises to 52.2 from 50.4 in July; and Composite rises to 51.4 from 49.9 in July.
• Cash ACGBs are 1-2bps richer, with the AU-US 10-year yield differential at +8bps.
• Swap rates are 1-3bps lower, with the 3s10s curve flatter.
• The bills strip shows pricing flat to +2.
• RBA-dated OIS pricing is flat to 2bps softer across meetings. A cumulative 22bps of easing is priced by year-end.