Sticking To Overnight Ranges

Aussie bonds have edged away from their overnight peaks, after U.S. Tsys pulled back from best levels late in Friday’s session, although a modest bid has recently come back in as Asia-Pac participants react to Friday’s U.S. ISM m’fing survey and news of an uptick in COVID cases in the Chinese province of Anhui.

• Cash ACGBs run 10.0 to 13.0bp richer across the curve, with the belly leading the bid as the cash space catches up to the overnight bid in futures. YM and XM are +13.0 and +11.0 respectively, while Bills run 4 to 18 ticks richer through the reds, bull flattening.
• There is a batch of domestic data releases due shortly, although reaction to the data may be muted given recent moves in the ACGB space and the proximity to Tuesday's RBA decision.