SYCOM Flattening Impetus Holds

Futures operate in the upper half of their respective SYCOM ranges after the bid in U.S. Tsys provided support to the space ahead of the weekend. YM +0.5 with XM +3.0 at typing, as the cash curve also runs flatter and swaps lag ACGBs across the curve. Bills run -1 to +1 through the reds.

• Melbourne has lifted its COVID-19 related curfew ahead of schedule, while optimism continues to swirl re: the imposition of some form of Australia-New Zealand travel bubble by year end, although the finer details and firm commitments remain scarce.
• Elsewhere, we have also seen confirmation that the Australian government's airline support schemes will be extended.
• The heavy, above task ACGB issuance schedule seen FYtD has allowed the AOFM to pull back on issuance this week (in relative as opposed to historical terms), with the major round of coupon supply scheduled for Wednesday, in the form of A$2.0bn worth of ACGB 1.00% 21 December 2030 issuance. This will be followed up by a seldom seen A$500mn tap of ACGB 3.25% 21 June 2039.