XM Outperforms U.S. Counterpart Overnight

{AU} AUSSIE BONDS: XM Outperforms U.S. Counterpart Overnight

There was some decoupling witnessed when it came to XM & U.S. 10s during the final overnight session of last week, as the former finished overnight trade +1.5, while YM was -0.5 at the bell. It is hard to pinpoint the driver of the outperformance in XM vs. U.S. Tsys, although lingering worry surrounding China Evergrande (eventhough systemic fears seem to have subsided) and underperformance for XM during Sydney hours provide some potential areas of discussion. Weekend news flow saw PM Morrison continue to push home the message surrounding the re-opening timelines he previously outlined, but there was little else of note. The local economic docket is empty today, with the RBA's latest round of scheduled ACGB purchases providing the only point of interest.