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A Touch Cheaper, Supply Eyed

AUSSIE BONDS

The move higher in core global FI yields pressured Aussie bond futures in overnight dealing, with the fiscal burden in the UK & hawkish Fedspeak front and centre since the Sydney close. That leaves YM -5.0 & XM -3.0 in early Friday trade, a little above their respective overnight bases after U.S. Tsys recovered from worst levels during the second half of Asia-Pac dealing.

  • Cash ACGBs run 2-4bp cheaper across curve, with bear flattening in play.
  • Bills sit 2-5bp cheaper through the reds, with the front end of the reds leading the weakness. RBA dated OIS continue to price 21-22bp of tightening for the final monetary policy meeting of ’23, while pricing re: the terminal cash rate continues to hover around 3.80%.
  • Looking ahead, A$700mn of ACGB Nov-29 supply and the release of the weekly AOFM issuance slate headline the domestic docket on Friday.
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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