Tracking Tsys In Muted Start To The Week

Aussie bond futures followed a similar patten to U.S. Tsys, initially shifting lower at the re-open as Sydney participants reacted to the post-NFP gyrations that were led by weakness in U.S. Tsys, although both YM & XM failed to break below their respective overnight session bases. The contracts then backed away from worst levels on the previously alluded to weakness in Chinese equities, with little In the way of domestic catalysts to trade off. YM sits -4.0 & XM -5.5 at typing, with tight ranges in play, while cash ACGBs sit 4-6bp cheaper across the curve after some catchup to overnight moves. EFPs have continued their recent march wider, to the tune of 3.5bp in both the 3- & 10-Year metrics. Bills run 6-10bp cheaper through the reds. Note that participants are also on the lookout for the launch and pricing of SAFA’s May ’36 tap, which will come at some point this week, per after-market guidance on Friday. Looking ahead, the NAB business survey, Westpac consumer confidence reading and CBA household spending data headline domestic matters on Tuesday.