Steeper

Monday resulted in twist steepening of the U.S. Tsy curve, as the major benchmarks moved away from best levels of the session. This allowed Aussie bond futures to soften in overnight dealing, leaving YM unch. & XM -5.5 in early Sydney trade, with the former regaining some poise in the last couple of minutes.

• A reminder that PM Morrison has called a snap cabinet meeting, which will be held later today. The cabinet will assess the latest evidence re: the omicron COVID strain, with the following restrictions seemingly up for discussion:
• Mandating the use of face masks in most indoor settings
• A return to working from home if possible
• Whether people should no longer be considered fully vaccinated unless they have had a booster shot
• Various federal and state level officials sounded relatively relaxed re: the variant over the weekend, pointing to a very different set of circumstances in Australia vs. global peers.