Syndication Adds To Global Pressure, Confidence Data Due

Bond futures extend on their overnight weakness during early Sydney dealing, as participants react to the wider weakness observed in core global markets on Monday, in addition to making room for the impending round of ACGB May-34 supply, which will come via syndication later today.

• That leaves YM -11.0 & XM -12.5, with 10.5-12.5bp of cheapening witnessed across wider cash ACGBs as the curve bear steepens.
• Bills run 2-9bp cheaper through the reds, steepening. Meanwhile, RBA dated OIS pricing has edged higher this morning, with a terminal rate of just under 4.10% currently priced.
• CBA household spending intentions data has already crossed, with and uptick observed in the M/M reading after last month’s fall. In the small print, CBA noted that “he gains in October were, however, narrowly based and impacted by higher prices in a number of categories. In total, six of the HSI spending categories were up on the month, with six down. In addition, the rise in October was lower than what could have been expected on a seasonal basis.”
• Looking ahead, Tuesday’s local docket will be headlined by the aforementioned ACGB May-34 syndication, with the monthly NAB business & Westpac consumer confidence readings headlining on the data front. We will also get the weekly ANZ-Roy Morgan consumer confidence print.