ACGBs (YM +4.0 & XM +5.5) are at Sydney session highs. Housing finance data for July misses, with a print of -1.2% m/m versus expectations of flat. The release, as expected, has generated little market reaction. Dealings remain muted, with narrow ranges, ahead of the highly anticipated US Non-Farm Payrolls data released later today.

• US tsys are flat to 1bp richer in Asia-Pac trade, with the curve steeper.
• Cash ACGBs are 4-5bp richer, with the AU-US 10-year yield differential 6bp lower at -13bp.
• Swap rates are 4-5bp lower.
• The bills strip has bull-flattened, with pricing +1 to +4.
• RBA-dated OIS pricing is flat to 2bp softer across meetings out to May’24. A 3% chance of a 25bp hike is priced for September.