Overnight lows have held for both YM & XM thus far, with futures searching for some clear direction in early Sydney dealing, leaving YM -2.5 & -6.5 at typing. Cash ACGBs run 1.0bp richer to 8.5bp cheaper, with twist steepening in play as the super-long end reacts to the steepening witnessed in core global FI markets on Tuesday.
- Impending ACGB Nov-33 supply and bear steepening on the JGB curve may also be applying some pressure to longer dated paper.
- Bills run -2 to +2 through the reds.
- The 3-/10-Year EFP box has steepened a touch, with 3-Year EFP tightening and 10-Year EFP flat, after a run of bull flattening in recent sessions.
- A reminder that retail sales data headlines the domestic docket today.