Steeper Overnight After Post-RBA Vol.

The weakness in the U.S. Tsy space dragged futures steeper in post-Sydney dealing, with YM -0.5 and XM -4.5 come the bell. That came after the post-RBA swings, which ultimately saw some modest richening in the face of the RBA ACGB purchasing dynamics. As a reminder, even though the RBA chose to press ahead with the taper to A$4bn/week from A$5bn/week, the elongated period until the initial reconsideration of the purchase pace, out to mid-February from mid-November, means that the RBA will still be buying more bonds than many expected in the short-term.

• A$1.0bn of ACGB 0.50% 21 September 2026 supply headlines the local docket on Wednesday. Elsewhere, the Sydney evening will see RBA Deputy Governor Debelle speak at TradeTech FX 2021, although the nature of the event may limit the scope for monetary policy-related comments.