Weaker, Off Cheaps, Tracking US Tsys

ACGBs (YM -3.0 & XM -3.5) are weaker but off Sydney session cheaps. The local calendar is light today. Accordingly, local participants have likely been on headlines and US tsys watch.

• US tsys have firmed off early Asia-Pac session lows, TY has recovered above the 109 handle. There has been little meaningful macro newsflow cross. Cash tsys sit ~1bps cheaper across the major benchmarks. TYU3 deals at 109-00+, -0-02+, and a 0-07 range has been observed thus far.
• Cash ACGBs are 2-3bp cheaper, with the AU-US 10-year yield differential 2bp tighter at -5bp.
• Swap rates are 2-3bp higher, with EFPs slightly tighter.
• The bills strip has bear steepened, with pricing -1 to -4.
• RBA-dated OIS pricing is little changed across meetings.
• (AFR) Coles chief executive Leah Weckert says fresh produce prices are falling, even as baked goods, grocery items and dairy products remain expensive. (See link)