Twisting Flatter

The space seemingly remains content to trade as a function of U.S. Tsy market gyrations, with little in the way of notable market impact foreseen when it comes to the pre-election Federal Budget, die for release later today. As we noted earlier, more focus will likely fall on AOFM issuance matters surrounding the Budget (with details likely to be released tomorrow). YM trades -2.5, with XM +2.0 as a result, with Aussie bond futures a little more reluctant to bounce from lows than their U.S. Tsy counterparts. Longer dated cash ACGBs have richened by ~4.5bp, with the twist steepening of the curve partly reflecting catchup to Monday’s U.S. Tsy move.