Yields 3-4bps Firmer Post US Moves, RBA's Bullock Testifying On RBA Reforms Today

Australian bonds have fallen in sympathy with US moves from Wednesday trade. In early Thursday dealing we are around 3.5-4bps firmer in yield terms across the benchmarks. In the futures space, XM is down roughly 3.5bps, YM off 4bps.

• More broadly we remain within recent ranges for yields and sub 2024 highs.
• The US FOMC minutes tone cautioned against early rate cuts, although policy makers believe the peak in rates has been reached. US yields were roughly 3-5bps firmer for the benchmarks in Wednesday trade.
• Locally in Australia today we have already had preliminary PMIs for Feb print. The Judo bank measure was weaker for manufacturing, 47.7 versus 50.1 prior. The services index rebounded though to 51.8 from 49.0, aiding a healthy rise in the composite index (to 51.8).
• Note that at 1pm AEDT RBA Governor Bullock appears before a Senate Committee on reforms legislation for the central bank.
• RBA pricing (based off futures) suggests that a full cut is not quite priced by the market for the June meeting this year.