Still Soft

The space continues to hold weaker on the day, with 3-Year EFPs pushing out levels not witnessed since the Mar '20 vol. While there has been little in the way of overt headline triggers, it is worth flagging the widening in the ACGB Apr '24/Nov '24 yield spread, which has now unwound 2/3rds of the recent 6-7bp of tightening over just 2 sessions, as markets swing back to pricing a lower chance of the RBA extending its yield targeting mechanism out to cover ACGB Nov '24 in July. There has also been some focus on local mortgage rate dynamics, after local press flagged that NAB cut two of its variable investment home loans by 30bp this morning. Finally, the AOFM released its weekly issuance slate, which is a little light on duration.