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Bid On Budget Headlines Develops Further

AUSSIE BONDS

Aussie bonds have continued to richen in light of the previously covered comments from Australian Treasurer Chalmers, who noted that the 21/22 fiscal deficit will print somewhere in the region of ~A$50bn narrower than was foreseen in March, with a wider deficit seen in 22/23 when compared to the final print for 21/22.

  • Note that the March projections saw a 21/22 deficit of A$79.8bn and a 22/23 deficit of A$78.0bn.
  • At the time of the March projections many sell-side names flagged the likelihood of a further meaningful upgrade to the nation’s fiscal outlook, so Chalmers’ comments do not come as a complete surprise, especially given relative commodity market price action (vs. relatively downbeat Treasury forecasts) observed in the time since.
  • YM deals +5.5 while XM is +4.5, with cash ACGBs running 4.5-6.5bp richer as the super-long end outperforms.
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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