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AUSSIE BONDS

A pull higher has been observed in recent trade, with YM and XM taking out their overnight/early Sydney highs to last deal +18.5 & +14.5, respectively. There hasn’t been an obvious headline trigger for the move, with participants continuing to assess the trade off between the post-FOMC U.S. Tsy-driven bid and this week’s hawkish RBA.

  • On the latter, there has been a slight removal of domestic tightening expectations post-Fed, per BBG’s WIRP, with the IB strip now pricing in a year-end cash rate of ~2.90% vs. yesterday’s session peak of ~3.10%.
  • Bills run 7-26 bp richer through the reds as a result.
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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