The Australian yield curve has twist flattened in morning Sydney trade, with the 3-Year/10-Year spread slipping to 49.3bn from the prior close of 50.8bp, with all eyes on the federal spending plan. ACGB yields sit +2.3bp to -2.5bp across the curve.

• Futures have now retraced their initial downticks, with flattening impetus creeping in; YM trades -1.0 & XM +1.5. Bills run -2 to +1 tick through the reds.
• Rate-hike pricing for the RBA's monetary policy meeting next week has been little changed over the past few weeks. The swaps market points to a~94% implied chance of a 25bp hike to the cash rate target.
• Treasurer Chalmers will deliver the budget speech to parliament at 19:30 AEDT/09:30 BST (see our preview here). Earlier this morning, he said that accelerating inflation was the "primary influence" on the spending plan.
• Once the budget is out, focus will turn to CPI data, due Wednesday.