Tight As Participants Await Local Risk Events Due Later This Week

Futures have coiled thus far, with the cash curve playing catch up to the flattening witnessed in the final overnight session of last week, as longer dated ACGBs richen by the best part of ~4.0bp on the day at typing. YM unch., XM +3.0. The lack of local input is evident in early dealing this week, although the A$ IG issuance pipeline is building. Participants await the latest round of monthly activity data out of China (due in ~20 minutes time), although more focus will fall on this week's major domestic risk events (the RBA's May meeting minutes and the domestic labour market report).