Subdued Data-Light Session, RBA Minutes Tomorrow

ACGBs (YM flat & XM flat) are little changed during a data-light Sydney session.

• There is little on the data front this week. Tomorrow does however see the RBA’s August 6 meeting minutes published. With the statement and Governor Bullock sounding slightly more hawkish, the minutes will be scrutinised, especially around the rate hike discussion to determine how serious it was. Upside risks to inflation will be another area of focus.
• In terms of data, Westpac’s leading index for July will be released on Wednesday. The indicator has been signalling sub-trend growth into the new year.
• Preliminary August Judo Bank PMIs will print on Thursday. They deteriorated in July with the composite just below breakeven at 49.9.
• Cash US tsys are flat to 2bps cheaper, with a flattening bias, in today’s Asia-Pac session after modest gains on Friday.
• Cash ACGBs are unchanged, with the AU-US 10-year yield differential at +3bps.
• Swap rates are flat to 1bp lower.
• The bills strip is little changed, with pricing flat to -1.
• RBA-dated OIS pricing is little changed. A cumulative 19bps of easing is priced by year-end.