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Bearish Flattening Holds, YM Tests Overnight Base


The post-NFP reaction continues to dominate during early Sydney trade, with YM -17.5 and XM -15.0. Note that both contracts have failed to break through their respective overnight session troughs although YM has tested its post-NFP base on a couple of occasions thus far, with the bear flattening dynamic remaining in play.

  • Cash ACGB trade sees the major benchmarks print 11.5-17.0bp cheaper across the curve.
  • A downtick in crude oil futures allowed the space to find a bit of a base early on, but some fresh weakness in U.S. Tsys seems to have leaked into ACGBs.
  • EFPs sit 1.0-1.5bp narrower on the day.
  • The IR strip is 11-21bp cheaper through the reds.
  • Outside of the previously flagged round of ACGB Apr-37 supply, participants will also be on the lookout from any spill over from the latest round of NZ inflation expectations data from across the Tasman.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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