Tight Session, Awaiting GDP Data

Aussie bond futures were happy to operate in narrow ranges on Monday, with YM unch. & XM +0.5 as we work towards the Sydney close. Note that the contracts are off worst levels of the Sydney session, even with Chinese equities and U.S. e-mini futures underpinned by the previously outlined positive developments surrounding the COVID situation in China & resultant support package announced for the Chinese city of Shanghai. Wider cash ACGB trade sees the major benchmarks running within -/+1bp of Friday’s closing levels, twist flattening, with a pivot around the 5-Year zone. 3- & 10-Year EFPs are a little wider on the day, bull flattening. Bills are -1 to +1 through the reds.

• There hasn’t been much to note when it comes to market moving domestic headline flow, with the Liberal & National parties getting new leaders after the former ruling coalition that consisted of the two parties was ousted in the federal election.
• Meanwhile, focus continues to grow on the impending RBA review, with a group of domestic economists calling for an independent overseas expert to head up the matter.
• Looking ahead to tomorrow’s docket, local matters will be headlined by the final round of Q1 GDP partials ahead of the release of the national accounts on Wednesday. Elsewhere, private sector credit and building approvals data will hit.