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ACGBs Look Through RBA SoMP

AUSSIE BONDS

The Aussie bond space has looked through the release of the RBA’s latest SoMP. There was little in the way of surprises in the initial SoMP comments picked up by news wires, while the Bank's wage growth projections see wage price growth of 3.25% in the year to Jun '24 (that qualifies as “3 point something,” but we provide a reminder that Governor Lowe has pointed to the need to assess a wider suite of wage price indicators given differing remuneration patterns in tight labour markets). Elsewhere, there isn't much in the way of meaningful fresh information in the economic forecasts, given previous comments provided at the end of the Bank's February decision and during Wednesday's address from RBA Governor Lowe. YM -6.5 & XM -8.0 as a result, consolidating the downtick observed ~45 minutes ago (which was linked to spill over from weakness in the JGB space). The bill curve holds steeper, -2 to -11 through the reds.

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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