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Front End Legs Lower

AUSSIE BONDS

Weakness in the front end of the space has continued, aided by U.S. Tsys. A ~5.3bp jump in today’s 3-month BBSW fixing has also aided that dynamic. YM has crashed through the overnight lows, registering a fresh cycle low in the process, and last prints -12.0, while XM is -6.0 as the bear flattening accelerates. The 3-/10-Year EFP box has now twisted steeper on the day. The Bill strip sits 7-20 ticks lower through the reds post-BBSW fix & YM sell off. Note that there is currently a ~50bp gap between the implied interest rate observed in IRM2 and today’s 3-month BBSW set.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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