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A Touch Steeper

AUSSIE BONDS

Futures operate a touch above their overnight/early Sydney lows, with YM -1.5 and XM -4.0 after the space tracked the wider impetus witnessed in the U.S. Tsy space in the wake of yesterday's Sydney settlement.

  • A$1.5bn of ACGB May-32 supply and Q3 wage data headline the local docket on Wednesday. Re: the latter, stronger than expected readings (the BBG survey median looks for +0.6% Q/Q & +2.2% Y/Y) would likely have more impact on the market than a softer than expected reading, given the RBA's recent rhetoric surrounding wages and inflation. The RBA has continued to point to a need for wage growth of 3% or more in order to drive realised underlying inflation sustainably above the midpoint of its target range i.e. 2.5+%.
  • Elsewhere, participants will be on the lookout for the launch of TASCORP's new Jan '33 line, which will be of benchmark size and come in "the near future."
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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