U.S. Tsy Bid Helps Counter NZ CPI Pressure

A bid in U.S. Tsy futures has allowed Aussie bonds to squeeze off of post-NZ CPI reaction cheaps, with little in the way of meaningful headline flow apparent since the NZ data (outside of hawkish adjustments to sell-side RBNZ calls). That leaves YM +1.5 and XM +4.5, with cash ACGBs running flat to 5bp richer, as the 7- to 12-Year zone outperforms.

• 3- & 10-Year EFPs have widened by over 3bp today, likely linked to spill over from payside NZ swap flow surrounding the NZ CPI print, with little movement in the 3-/10-Year EFP box.
• Bills run 1-8bp cheaper through the reds, bear flattening, while RBA dated OIS price a terminal cash rate of just below 4.10%, a couple of or so higher on the day, and a couple of bp off of the post-NZ CPI peak.
• The previously flagged speech from RBA Deputy Governor Bullock is due at the top of the hour, with the release of the minutes covering the latest RBA monetary policy decision due 30 minutes after.