LOOK AHEAD: Eurozone Timeline of Key Events (Times BST)

ACGBs are slightly stronger (YM flat & XM +2.0) but off Sydney session's bests as US tsy futures trade slightly lower in a narrow range in Asia-Pac trade. With local headlines and economic data light today, local participants have watched US tsy futures for guidance as the market digests news of a debt ceiling deal.

• Cash tsys are closed today for the Memorial Day holiday. US tsy futures are at 112-10+, -2+ versus Friday’s close, after initially cheapening to 112-03+.
• Cash ACGBs are 1-2bp richer with the AU-US 10-year yield differential -2bp at -9bp.
• Swap rates are 2-3bp lower with the 3s10s curve 1bp flatter and EFPs slightly tighter.
• Bills strip twist flattens with pricing -2 to +2.
• RBA-dated OIS pricing is flat to 2bp firmer for meetings out to October but 1bp softer for meetings beyond.
• The local calendar sees April Building Approvals released tomorrow. Overall, an increase in non-high-rise constructions is expected to contribute to a 2% m/m rise in total dwelling approvals. However, the high-rise sector remains uncertain and poses a significant variable in the equation.
• However, the focus of the week is likely to be RBA Lowe’s appearance and April CPI data on Wednesday.

Regional equities are once again mixed. Tech related plays are outperforming, following strong gains for US indices in Friday trade. US Futures are higher following the debt deal announcement from the weekend between Biden and McCarthy, with both leaders expressing confidence that the agreement with pass both US houses. Futures are away from earlier highs though. Eminis last around 4224, +0.25% (opening highs were just above 4243). Nasdaq futures are +0.42%.

• China markets are mixed, with the CSI 300 off by 0.60% to the break. We did see some support around the 3820 region, which is close to recent lows. Some jitters in the local government debt market are likely weighing. The Shanghai Composite is doing better, up 0.15% at this stage.
• Hong Kong markets have returned today, with the HSI off by 0.26% at the break, while the HS China Enterprise Index down 0.59%. This puts the index close to bear market territory (-19% off late January highs).
• The Topix (+0.70%) and Nikkei 225 (+0.99%) are faring better, with tech related strength spilling over. The Taiex is also higher again, +0.85%. South Korean markets are closed today.
• The ASX 200 is up nearly 1%, with firmer commodity prices in the metals space helping.
• The JCI is Indonesia has struggled, down 0.70% at this stage, lower palm oil prices not helping, while slower bank lending is likely raising question marks over the growth outlook.