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

ACGBs (YM 0.0 & XM -1.5) are cheaper today, earlier we had NAB Business survey's with business confidence stable at 1 in April but conditions eased further to 7 from 9, only slightly above the series average, while CBA household spending fell 1.0% m/m in Apr, from a 0.2% rise in March.

• Cross-asset moves: US equity futures are a touch lower today, while the ASX200 is down 0.24%, the BBDXY is little changed today the AUD is down 0.13%, while Iron ore is down 0.19% and now trades at $116.45/ton.
• US Tsys curve is slightly steeper today, however we have remained in very tight ranges with yields flat to 1bps lower, with the 2Y -0.9bps at 4.856%, the 10Y -0.2bp to 4.494% with the 2y10y -0.436 at -36.693.
• The ACGB curve has bear-steepened today, yields are flat to 2bps higher with the 2y10y +1.220 at 30.32, while the AU-US 10-year yield differential is 1bps lower, now -16bps
• Swap rates are 2-4bps lower.
• The bills strip is slightly richer, up 1bp
• RBA-dated OIS implied rate now pricing 2-3bps higher into the November meeting, while the market is now pricing just 7bps of easing into year-end to a terminal rate of 4.28%
• Looking ahead, Tuesday we have the Federal Budget handed down

Gold is down a touch, last near $2355. We are off intra-session highs from Friday last week (which came in near $2380). At this stage we are 0.20% lower for Monday trade, after gaining 2.55% last week.

• A more stable USD backdrop, coupled with higher core yields, led by the US, is likely weighing on gold sentiment at the margins. Onshore analysts in China last week were also cautioning local investors around lofty gold price levels. We have key US CPI data later this week as well.
• The technical backdrop for gold remains supportive though. The end of the corrective leg lower has unwound the overbought condition and allows markets to focus on next resistance at $2431.50 - the bull trigger. Any return lower would eye $2255.0, the 50-day EMA.