Spill Over Remains In The Driving Seat

Spill over from the aforementioned weakness in the U.S. Tsy space drove Aussie bond futures through their respective early Sydney lows, although YM & XM have managed to find a bit of a base since, leaving them -15.0 & -12.5 at typing, with bear flattening still in play. The longer end of the cash ACGB curve has cheapened by ~10bp, while 3s provide the weakest point on the cash ACGB curve. The IR strip has followed the wider theme in bond futures, running lower, before finding a bit of a base alongside bonds, printing 6-21 ticks lower through the reds as of typing. Note that there was nothing in the way of wider reporting re: RBA Governor Lowe’s latest address, with no text release on the Bank’s website. We can only assume that there were no comments on monetary policy in the address.