Westpac's RBA Easing Call, TikTok Ban Block Grab Attention

Aussie bond futures promptly retraced their blip lower on the pushback in RBA easing call from Westpac to Nov from Oct. YM trades +0.5 & XM +2.0 at typing. Cash ACGB curve has bull flattened, yields last sit 0.2-2.2bp lower. Bills last seen unch. to +1 tick through the reds. The RBA refrained from ACGB purchases today, which wasn't much of a surprise given the current yield levels. Domestically, Victoria eased its social distancing restrictions ahead of schedule, which included lifting Melbourne curfew.

• Aussie bond flows coupled with the news that a judge has temporarily blocked an order from White House that would have banned TikTok from U.S. app stores applied some brief, limited pressure to T-Notes, before they swung back amid realisation that the block is just temporary & a recovery in Aussie bonds. T-Notes last trade -0-01 at 139-19+. Yields sit marginally higher in cash space. Eurodollars running unch. through the reds.
• JGB futures trade unch. at 152.16, while cash JGB yield curve runs steeper a tad. The BoJ left the sizes of its 1-3, 5-10 & 25+ JGB purchases unchanged. Japanese calendar is rather uninspiring today.