Twist Steepening, Futures Within Overnight Ranges

Aussie bonds have been subjected to some light twist steepening pressure, with a late NY bid in U.S. Tsys helping the space to stabilise, before some modest weakness in Tsys during early Asia dealing helped apply some pressure to the longer end of the curve. YM is +1.0 and XM is -3.0, with both contracts sticking to the confines of the ranges established in overnight dealing. Wider cash ACGB trade sees 1bp of richening to 4bp of cheapening, pivoting around 5s. EFPs are flat to a touch wider. Australia’s monthly trade balance data is due shortly, with Chinese trade figures due later in the session, but it will be the tone of the RBA’s post-meeting statement that dominates today (assuming the widely expected 25bp hike is delivered)