Slightly Stronger, ‘Higher For Longer’ Message From JH, Retail Sales Due

ACGBs (YM flat & XM +2.5) are slightly richer after Fed Chair Powell's speech from Jackson Hole was deemed balanced with few surprises. “We are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective,” Powell said.

• US tsy 10-year ended little changed at 4.24% despite trading in a whippy 9bp range. Meanwhile, front-end tsy yields continued to move higher. The 2-year yield increased 6bp to 5.08%, contributing to a flatter yield curve.
• Cash ACGBs opened flat to 3bp richer, with the AU-US 10-year yield differential -2bp at -10bp.
• Swap rates are flat to 3bp lower, with the curve flatter.
• The bills strip is slightly cheaper, with pricing flat to -2.
• RBA-dated OIS is mixed, with pricing -2bp to +3bp.
• On Sunday the China Securities Regulatory Commission cut the levy charged on stock trades from 0.1% to 0.05%, effective from today. The move is designed to boost confidence in the market. It is the first time the levy has been cut since April 2008.
• Today the local calendar sees Retail Sales for July, ahead of RBA Governor-Elect Bullock’s speech, titled “Climate Change and Central Banks” tomorrow. On Wednesday, the CPI Monthly for July is on tap.