Soft To Start The Week

Steepening remains at the fore for Aussie bonds today, after the space looked to U.S. Tsys for direction on SYCOM. YM -0.5 and XM -8.0, as the latter has a foray through its SYCOM lows.

• A lack of RBA purchases has been noted, although there was little in the way of expectations re: such a move. Elsewhere, the latest round of ACGB '29 supply was well received. Corporate supply announcements have been steady.
• On a state level, Monday saw the A$18bn widening of Queensland's projected debt levels for the current financial year, accompanied by a relatively stable deficit outlook vs. previous projections.
• The weekend saw the state of Victoria's stage 4 restrictions extended for 2 weeks beyond the original end date of Sep 13, as state Premier Andrews outlined the roadmap for moving out of lockdown. This came as University of Melbourne modelling suggested that the city could remain under stage-four restrictions until mid-October.
• Australia's monthly NAB business confidence survey headlines tomorrow.