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Bear Steepening Comes To The Fore

AUSSIE BONDS

The previously flagged inflation dynamics in the latest NAB business survey may have helped YM and Bill futures back from their early Sydney peaks, with little in the way of fresh alternative domestic news flow to latch onto. YM is now -1.5, with the weakness in the Tsy space perhaps having a bit of a delayed reaction on the contract and feeding into the weakness outlined above (after a local catalyst became evident), while XM is -7.5, hovering 1.0 above worst levels of the session. The twist steepening impetus has moved into a state of bear steepening. Bills are flat to 5 ticks richer 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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