Twisting Flatter

The longer end of the cash curve has drawn support from the bull flattening impetus witnessed in U.S. Tsys during Thursday trade, although the shorter end isn't as firm, promoting twist flattening as we move into a Sydney session that seems to be a little bereft of potential headline domestic drivers. YM -1.2, XM +0.6 at typing.

• Sino-Aussie tensions continue to draw attention, with worry re: China employing a broader round of measures/levies on Australian goods evident for most of the week. China's Global Times has also touched on the matter, with a recent editorial piece noting that ": Impacts of the downward spiral of China-Australia relations on Australian exports are striking in both scope and severity. As the most important part of China-Australia trade, iron ore may be less vulnerable to political shocks compared to other products, but it is not completely immune."