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Building On Early Bid

AUSSIE BONDS

Aussie bonds have edged a little higher, building on an early bid as Sydney participants react to the language surrounding Thursday’s ECB decision and new anti-fragmentation tool. Some spillover from U.S. data-inspired recession-worry likely provided support as well (following the miss in the Philadelphia Fed survey and an uptick in weekly initial jobless claims), with tech equity sentiment in Asia dented by Snap Inc’s disappointing earnings after the bell. Cash ACGBs run 12-15bp richer across the curve with the belly leading the bid. YM is +10.5 and XM is +13.0, shy of best levels after bettering their respective overnight highs. Bills run 5 to 14 ticks richer through the reds, bull flattening.

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