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ACGBs Trade Firmer, Keep An Eye On NZGBs

AUSSIE BONDS

Aussie bonds consolidate early gains, YM last trades +1.0 & XM +1.0. Cash ACGB curve has flattened, with yields last seen +0.4bp to -2.5bp & 5s outperforming. Bills trade unch. to +3 ticks through the reds.

  • The AOFM tapped A$150mn of the 0.75% 21 Nov '27 linker, attracting a healthy 5.17x bid/cover ratio.
  • Developments across the Tasman continues to grab attention. NZGBs have picked up a bid after the NZ gov't unveiled a slew of measure intended to reign in soaring housing prices, which may have spilled over into ACGBs, to some degree.
  • Australia's ANZ Roy Morgan Weekly Consumer Confidence fell to 110.4 from 110.9.

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