Stronger Ahead Of Jobs Data

ACGBs are firmer (YM +20.8 & XM +12.3) as U.S. Tsy yields plunge as concerns of another global banking crisis mount. After breaching Monday’s yield lows, U.S. Tsys scaled back their advance on reports that Swiss officials FINMA would provide liquidity to Credit Suisse. At the bell the U.S. Tsy cash curve had bull steepened to its highest level since October with 2-year yields and 10-year yields respectively 36bp and 23bp lower.

• Cash curve bull steepens 8bp with the 3-year benchmark yield 20bp lower and at its lowest level since August.
• AU-US 10-year yield differential is +10bp at -13bp.
• Swaps rates 8-16bp richer with the 3s10s curve 8bp steeper and EFPs wider.
• Bills strip is 12-25bp richer led by mid-whites.
• In line with the paring of tightening expectations globally, RBA dated OIS softens 20-25bp for meetings beyond June with the market back to signalling a halt to the tightening cycle.
• On the local data front, February’s Employment Report is slated for release today. After two consecutive monthly declines the market is looking for a strong result (BBG consensus +50k & 3.6% Unemployment Rate) to defuse expectations of labour market stagnation.