Tracking US Tsys Cheaper

ACGBs are dealing on a negative note (YM -12.0 & XM -11.5), following the weakening trend observed during the Sydney session. Without domestic catalysts, local participants appear to have been guided by US tsys, which have continued their cheapening from the NY session.

• Cash ACGBs are 11bp cheaper with the AU-US 10-year yield differential unchanged at +16bp.
• Swap rates are 11-12bp higher with EFPs slightly wider.
• Bills strip bear steepens with pricing -2 to -16.
• RBA dated OIS pricing is 8-12bp firmer for meetings beyond Nov'23 with Feb'24 leading.
• The local calendar remains light until Tuesday when we can expect the release of CBA Household Spending data for June, Westpac Consumer Sentiment for July, and NAB Business Confidence for June. Additionally, on Wednesday, market attention will be focused on Governor Lowe's speech, as investors hope to gain insights into the central bank's level of concern regarding inflation.
• Later today, attention turns to ADP employment data, ahead of Non-Farm Payrolls on Friday. ADP Employment Change: 225k est vs. 278k prior. The US calendar also sees May Trade Balance, June ISM Non-Mfg, June S&P Global Services PMI, Weekly Initial Jobless Claims and May JOLTS.