Subdued Open To Sydney Session, US Tsys Little Changed Overnight Ahead Of US CPI

In futures roll-impacted trading, ACGBs (YM -0.4 & XM +0.3) are little changed, with RBA Governor Bullock currently speaking at the AusPayNet Summit. She is discussing payments and so it appears that her talk is not going to cover the monetary policy outlook.

• It was a subdued data-light NY session, ahead of some key risk events this week, including the US CPI tonight. FOMC, ECB and BOE policy meetings are also scheduled this week, before the BOJ next Tuesday.
• The sole items on the calendar were the 3-year and 10-year US tsy auctions, both of which fell short of expectations with tails of 1.8bps and 1.4bps, respectively. Initially, the market cheapened but rebounded, leading to a twist-steepening of the curve, pivoting at the 2s, with yields 1bp lower to 2bps higher. The 10-year yield reached 4.29% in early post-auction dealings before concluding at 4.23%.
• Cash ACGBs are flat, with the AU-US 10-year yield differential 2bps wider at +10bps.
• Swap rates are 1bp lower, with EFPs slightly tighter.
• The bills strip is slightly cheaper, with pricing flat to -1.
• RBA-dated OIS pricing is little changed.
• Westpac consumer confidence prints up 4.4pts last week.
• Today, the local calendar also sees the NAB business survey.