Steeper On U.S. Tsy Move

The futures space steepened overnight, driven by the beat of the U.S. Tsy market drum, YM -0.5 and XM -6.0 at typing, with the latter more than unwinding its post-RBA gains and swaps tightening across the curve.

• As we have noted elsewhere, the focus of the RBA is as much on relative 10-Year yields as it is on outright levels (with Governor Lowe paying particular attention to spreads vs. U.S. & Canadian 10s in the impromptu speech that he made yesterday).
• Semi government bond market dynamics will also be eyed after yesterday's initial tightening.
• Bills 1 tick lower through the reds, with all of the contracts holding below 100.00 after IRH1's brief and indeed limited foray above on Tuesday.
• Locally, retail sales & weekly payrolls data are due today, although the U.S. election dynamic is set to dominate.