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A Little Firmer Early On

AUSSIE BONDS

Treasurer Frydenberg outlined a ~A$27bn narrowing of the commonwealth fiscal deficit for FY20/21 when compared to projections made in the May budget (note some speculation had erroneously pointed to the potential for comments on the current FY).

  • The firming in the U.S. Tsy space has provided some support for ACGBs, leaving YM +0.5 & XM +2.5, with longer dated cash ACGBs richening by ~2.5bp.
  • Chinese PMI data provides the next major point of interest of interest for regional participants.
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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