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ACGBs Give Back Some Gains After Fed's New Term Funding Announcement

AUSSIE BONDS

The announcement that the Fed had created a new emergency bank term funding program offering 1-year loans has had an immediate impact on ACGBs and swaps with both cheapening substantially across the curve. ACGB were 11-16bp stronger, 13-15bp off bests. A similar move in swaps with rates now only 6-9bp richer on the day at the time of writing.

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