Under Pressure Early On

Overnight weakness in U.S. Tsys has spilled over into the ACGB space at the re-open of cash trade, with yields extending gains thereafter. Their move was at odds with a reverse move in NZGB yields across the Tasman, where NZ Treasury's decision to cut debt issuance plan over the next four years provided support to local government bonds.

• The release of Westpac Consumer Confidence data this morning failed to rock the boat, as headline index slipped a tad but remained net positive. Elsewhere, the RBA offered to buy A$800mn of semi-government bonds with maturities of Apr '24 to Nov '32.
• ACGB yields trade 2.3-4.8bp higher across the curve, stabilising near session highs. The shorter end underperforms, with a degree of curve flattening evident. Aussie bond futures have been rangebound, YM trades -3.2 & XM -2.3. Bills run 2-5 ticks lower through the reds.