Stellar Labour Market Report & Lowes Comments Dominate

Aussie bonds have recovered from worst levels of the day alongside U.S. Tsys, but YM & XM still sit 9.5 lower vs. yesterday's settlement levels.

• A stellar domestic labour market report pushed the space to worst levels of the day after some modest pressure for YM in the wake of RBA Governor Lowe's latest address (the spill over from the FOMC decision and a strong NZ GDP report had applied pressure before then).
• The labour market report, coupled with no real pushback from RBA Governor Lowe re: market pricing surrounding the chances of the Bank rolling its yield curve control measure to ACGB Nov '24 from ACGB Apr '24, saw multi-month wides in the ACGB Apr '24/Nov '24 yield spread.
• To recap, the labour market report saw headline job growth top exp. by nearly 4x the BBG median, driven by full-time job growth. This allowed the unemployment rate to fall to 5.1% even as the participation rate nudged higher. Elsewhere, underutilisation and underemployment cratered to multi-year lows.
• The release of the AOFM's weekly issuance slate and A$1.0bn of ACGB 1.75% 21 November 2032 supply headline locally on Friday.