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Treasuries Open Little Changed, RBA Focus In The APAC Region Today

US TSYS
  • Treasury futures are slightly lower in early trading, with the 10Y contract - 01 + from NY closing levels at 108-27, while the 2Y contract is performing slightly worse off - 00⅞ at 101-22⅜.
  • Japan is back from a two-session break, while focus will be on the RBA later today when they hand down their rate decision, they are widely expected to keep rates on hold with the market paying close attention to the RBA statement and Gov Bullocks press a conference an hour later.
  • Cash Treasury curve bull-flattened again on Monday, yields have opened slightly higher today, with the 2Y yield +0.4bps at 4.833%, 10Y +0.4bps to 4.491%.
  • Across local rate markets: ACGBs curve flatter with yields 1.5bps higher to -1.5bps lower, NZGB curve has pivoted at the 7yr, yields are 1.5-4bps lower while JGBs seeing demand in the belly of the curve 7-10yrs with yields 1-3bps lower.
  • Looking Ahead: Little on the data calendar for the week, focus will turn to Fed speakers with MN Fed Kashkari at 1130ET.

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