Stable Start

Aussie bond futures operate just shy of their late overnight peak, after popping higher on the back of increased worry re: the potential surrounding a Russian invasion of Ukraine.

• Friday’s worry was followed up by weekend reports pointing to U.S. intelligence flagging the potential for such a move to come as soon as Wednesday, although senior U.S. administration officials didn’t confirm this in subsequent addresses (sticking to the “any day” and “within the window” narrative). Calls between the leaders of the U.S. & Russia, as well as France & Russia, failed to unearth much in the way of fresh information. Ukrainian leadership has continued to try and play down some of the worry expressed by the West, stressing that there hasn’t been a pivotal change in the situation at the border. Note that U.S. President Biden has been invited to Ukraine, as Ukrainian leadership believes that such a move would stabilise the situation.
• YM +8.5 & XM +9.5 at typing.
• A$500mn of ACGB Nov-28 supply headlines the local docket on Monday.