Trading On Wider Swings In Risk

Aussie bonds have traded on the previously outlined swings in risk appetite, operating off worst levels of the session at typing after dipping lower alongside Tsys. That leaves YM -1.5 & XM at unchanged levels, while wider cash ACGB trade sees a pivot around the 7-Year zone as the curve twist flattens. Bills run 2-5bp cheaper through the reds.

• Local data had no tangible impact on the space, with private capex providing soft GDP partial data (at least on face value) for a second consecutive day (-0.3% Q/Q vs. BBG median of +1.5%), although there was a positive revision for Q421 (up to +2.3% Q/Q from +1.1%). We also saw a much firmer than expected markup in firms’ 22-23 capex plans, while the GDP-centric equipment, plant and machinery category was firmer than the headline, rising by 1.2% Q/Q.