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Twist Flattening

AUSSIE BONDS

Aussie bonds have nudged lower with a downtick in U.S. Tsys aiding the move. There hasn’t been anything in the way of meaningful headline flow to drive the space. Cash ACGBs run 1.0bp cheaper to 0.5bp richer across the curve, twist flattening, pivoting around 15s. YM is -0.5 and XM is -0.5, a little below their respective overnight highs, with YM back from a brief show above its overnight peak. Bills sit 2 tick richer to 2 ticks cheaper through the reds.

  • Australian trade balance data for June will cross in ~45 mins, with little else by way of tier one data releases due for the rest of the Sydney day.

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