Steeper On Offshore Spillover

YM -0.5, XM -3.5 at the close, while cash ACGBs were steeper and swaps narrowed vs. ACGBs across most of the curve, with the impetus from Thursday's NY U.S. Tsy trade spilling over and holding.

• The space continues to look through local COVID matters, with the Australian state of Victoria set to enter a 5-day circuit breaker lockdown after < 20 COVID cases became apparent in the state
• Elsewhere, some SSA issuance pricing was seen (A$200mn tap of KfW's Sep '26 A$ line).
• The AOFM's weekly issuance schedule provided another atypical round of issuance, with a wider spread of maturities set to be offered over 3 auctions next week (see earlier bullet for details). Today's ACGB supply was easily digested.
• Looking to next week, outside of the aforementioned AOFM supply and usual RBA ACGB purchases, markets will focus on the local labour market report and meeting minutes from the RBA's Feb decision, although a deluge of post-decision RBA rhetoric has limited the potential for any notable surprises.