Slightly Weaker, Subdued Session, Consumer Sentiment Falls But Business Confidence Rises

ACGBs (YM -1.0 & XM flat) remain little changed after dealing in relatively narrow ranges in today’s Sydney session. News flow has been light.

• Westpac Consumer Sentiment fell 2.4% m/m in April, with the Buy A Major Household Item sub-component down 6.6% m/m.
• NAB Business Confidence rose 1pt to +1 in March, while Business Conditions fell 1pt to +9.
• Cash US tsys are dealing flat to 1bp richer in today’s Asia-Pac session.
• Cash ACGBs are unchanged, with the AU-US 10-year yield differential 3bp wider at -21bps.
• Swap rates are flat to 1bp lower.
• The bills strip is flat to -2.
• RBA-dated OIS pricing is little changed across meetings. A cumulative 29bps of easing is priced by year-end.
• (Bloomberg) Australia has released draft legislation to introduce tax incentives to encourage investment and construction in the build-to-rent sector, Treasurer Jim Chalmers said in a statement. Tax incentives apply to build-to-rent projects, consisting of 50 or more apartments or dwellings, made available for rent to the general public.