Tight Ranges Intact

Nothing to really add when it comes to fundamental commentary surrounding primary drivers of the ACGB space, with YM & XM both -2.0 on the day, operating in tight ranges with overnight lows respected thus far. Meanwhile, the wider ACGB curve sees a 1-2bp cheapening shift, with the 7- to 12-Year zone leading the weakness at the margin. EFPs are essentially unchanged on the day. Bills sit flat to -2 through the reds, while RBA-dated OIS operates around levels observed shortly after the open.

• Deutsche Bank recently updated their RBA call. They now look for a terminal cash rate of 4.10% by August pointing to Q4 CPI and an apparent resilience in household spending as the primary drivers for the view change. Deutsche previously had a terminal rate of 3.35% pencilled in (which they expected to be registered next month).