Softer In The Wake Of RBA

Aussie bonds traded softer post-RBA as the Bank only expressed slightly more aggressive tones re: support for its 3-Year yield targeting scheme and no worry re: the outright levels that ACGB yields hit at the backend of last week. The language employed wasn't overtly forceful and there was a lack of reference to the ACGB Nov '24 line re: the evolution of the Bank's 3-Year yield target, which would have provided some disappointment to those who attributed a non-negligible chance to the appearance of rhetoric surrounding the matter. Ultimately, the RBA is looking to maintain optionality re: its bond buying scheme and 3-Year yield target. The Bank continued to express some caveated and indeed cautious optimism re: the prospects of a more drawn out economic recovery, while providing nothing in the way of meaningful commentary on the housing market & AUD, although both got a mention. YM -1.0, XM -5.0 at the close, a little off worst levels.

• There was nothing in the way of meaningful reaction to local economic data releases, which included GDP partials and a particularly soft round of monthly building approvals.
• Q4 GDP data headlines the local docket on Wednesday, with the latest round of ABS payrolls data also due.