Supported, But Lacking Real Upward Impetus

Aussie bonds stuck to a narrow range, failing to really kick on in early Sydney trade, even with short snap COVID restrictions coming into play in the greater Sydney area (on the back of a couple of COVID cases being found in the last 48 hours). Later in the day we saw headlines note that China's NDRC has halted activities under the China-Australia economic dialogue indefinitely. Still, some local participants and some experts in the field have equated the impact of the cessation of the discussions to 0, with the AUD unwinding a portion of its knee-jerk move lower, while ACGBs were limited in terms of their reaction to the news. The latest round of scheduled RBA ACGB purchases was another supportive factor. YM +0.5 & XM +4.0 on the day at typing.

• An address from RBA Deputy Governor Debelle headlines the local docket today with the topic of "Monetary Policy during Covid," but it doesn't hit until 19:00 Sydney, 10:00 London. Tomorrow's local docket is headlined by the release of the RBA's SoMP, A$800mn of ACGB 0.25% 21 November 2024 supply and the release of the AOFM's weekly issuance slate.