Tracking US Tsys Richer

ACGBS are dealing stronger (YM +9.0 & XM +9.5), just off Sydney session highs as US tsys extend the strength seen in the NY session in Asia-Pac trading. Cash US tsys are 1-2bp richer than NY closing levels across the benchmarks.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined Westpac consumer sentiment and NAB business confidence data.
• Cash ACGBs are 9bp richer with the AU-US 10-year yield differential -1bp at +21bp.
• Swap rates are 9-11bp lower with the 3s10s curve steeper.
• The bills strip is richer with pricing +4 to +10, early reds leading.
• RBA-dated OIS pricing is 2-8bp softer across meetings. The market attaches a 54% chance of a 25bp hike at the August meeting.
• Tomorrow the local calendar's highlight is RBA Governor Lowe’s speech to the Economic Society of Australia in Brisbane, titled ‘The Reserve Bank Review and Monetary Policy”. Investors will be hoping to gain insights into the central bank's level of concern regarding inflation after the policy pause this month.
• Tomorrow the AOFM plans to sell A$700mn of the 2.25% 21 May 2028 bond.