Yields Firm On Global Spill Over

Aussie bond futures have tracked tight ranges. XM sits off by -5, while YM is down by -7, with the latter seeing slightly more downside as the session progressed. This looks to be largely following the weakening in core yields through Tuesday's session.

• On the domestic front, there has been little domestic news flow, with PM Albanese stating that the upcoming May budget will consider further cost of living relief for households. This came after internal RBA documents showing such pressures weighed on growth through the second half of 2023 (BBG).
• In the cash ACGB space, yields are 4.5-6bps higher, sitting near session highs. Slightly larger yield gains have been seen at the front end.
• The local data calendar is quiet until tomorrow's PMI revisions for Dec, but these prints are unlikely to move market sentiment. Next week delivers retail sales for Nov and CPI for Dec (Wednesday), which will be of greater focus for local markets.