Tight Sydney Trade, Awaiting Local Cues

Aussie bonds have held onto the overnight twist steepening impetus, with a lack of notable local headline flow leaving the space at the mercy of broader macro drivers. YM +0.5 & XM -2.5 at typing. The longer end of cash ACGB curve has cheapened by the best part of 4bp as of typing. Bills run 1-2 ticks lower through the reds.

• Soft ANZ job ads data (accompanied by positive revisions) did little for the space, with the data provider noting that “the record employment gain of 366,100 in November was likely a significant factor behind the fall, but we can’t rule out some dampening effect from Omicron. Still, Job Ads are 4.2% above the pre-Delta-lockdown peak in June 2021 and 36.8% above the pre-COVID level.”