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Broader FI Bid Adds To Local Factor

AUSSIE BONDS

The bid in JGBs & U.S. Tsys (flagged elsewhere) is allowing ACGBs to extend their post-labour market report richening, leaving YM +23.0 & XM +23.5, operating at fresh session highs, while wider cash ACGB trade sees 18-24bp of richening, with the belly of the curve now leading the bid. Bills continue to squeeze higher in sympathy with that dynamic, printing 12-27bp richer through the reds, bull flattening, while terminal cash rate pricing in the RBA dated OIS strip hovers just above 3.50%, shifting lower on the day. Technically, bulls look to force a clean break through the December peaks in both YM & XM to open the way higher (YM is threatening to do so at typing).

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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