Slightly Richer, Subdued Session Ahead Of US NFP

ACGBs (YM +3.0 & XM +2.5) are dealing slightly richer following a moderate sell-off in US tsys overnight. After yesterday's bear-steepening, US tsys are trading little changed in today’s Asia-Pac session. Local participants are likely digesting yesterday's in-line weekly jobless numbers ahead of this evening's Non-Farm Payrolls release. The proximity to the print may limit activity across global bond markets in today's session.

• Today, the local calendar is empty, apart from a speech by RBA Brischetto, Head of Financial Stability, at the Banking and Financial Stability conference.
• Cash ACGBs are 2-3bps richer, with the AU-US 10-year yield differential unchanged at +15bps.
• Swap rates are 2-3bps lower, with EFPs little changed.
• The bills strip has bull-flattened, with pricing flat to +4.
• RBA-dated OIS pricing is dealing little changed across meetings.
• (AFR) Treasurer Jim Chalmers has axed a controversial proposal requiring the Reserve Bank of Australia to give “equal consideration” to full employment and inflation, as part of a new agreement that may mean interest rates stay higher for longer. (See link)