Slightly Richer, Local Calendar Light, US Holiday

ACGBs are slightly richer (YM flat & XM +1.0) despite cash US tsys finishing trade ahead of the weekend 2-7bp cheaper across major benchmarks. US tsys were moderately pressured through Friday's session following stronger-than-expected UofMich consumer sentiment.

• A reminder that cash tsys are closed today due to the observance of a US national holiday.
• Cash ACGBs opened flat to 1bp richer with the AU-US 10-year yield differential -2bp at +26bp.
• Swap rates opened flat to 1bp lower with the 3s10s curve flatter.
• The bills strip twist steepens with pricing +1 to -3.
• RBA dated OIS opened little changed across meetings.
• Australia will invest A$2 billion to build thousands of government-subsidized homes across the country, Prime Minister Anthony Albanese said, a move that will help resolve a housing supply crunch that is being blamed for resurgent property prices. (link)
• The RBA and Treasury are considering a pivot towards quantitative tightening (QT) according to an AFR article. A decision on QT will be made after September 30, to assess the market impact of commercial banks repaying almost half – $84 billion – of the money borrowed from the RBA’s emergency term funding facility. (link)
• There are no data releases today ahead of the release of the RBA Minutes for the June Meeting tomorrow.