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Cash Yields Rise After Holiday, But ACGB Futures Slip

AUSSIE BONDS

ACGBs have caught a bid as cash Sydney reopened after the long weekend, with the space digesting pent-up market impetus generated by yesterday's risk aversion. The broader worry surrounding China's Covid-19 situation remains, while Australia's domestic headline flow is dominated by election matters.

  • Cash ACGB yields sit 4.0-5.3bp lower across the curve as we type. Bills run -3 to +7 ticks through the reds. YM trades +5.5 & XM +4.5, with both losing ground from the off.
  • The local economic docket is virtually empty today, with all eyes already on Wednesday's CPI report. The data is expected to show that headline inflation accelerated to +4.6% Y/Y in the three months through Mar 31, according to BBG survey of economists. Trimmed mean CPI growth is forecast to have quickened to +3.4%, which would see it print above the upper end of the RBA's target range for the first time since 2010.

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