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Bull Flattening In Play Since Sydney Close, Futures Off Highs
Futures firm aggressively in the final overnight trading session of last week, aided by the twist flattening witnessed on the U.S. Tsy curve, although the move in local futures was much more pronounced, pointing to some profit taking/fresh longs being set by offshore investors ahead of this week's RBA decision. The bond futures contracts are off of their overnight peaks, easing in early Sydney trade, with YM +7.0 and XM +14.0. The IR strip has seen some twist flattening since Friday's settlement, trading -1 to +14 through the reds at typing.
- Monthly Melbourne Institute inflation readings, ANZ job ads, CoreLogic house price and housing finance data are all due today, along with the latest round of scheduled ACGB bond purchases from the RBA. Still, we should expect market jitters ahead of tomorrow's RBA decision (expect our full preview of that event to be released over the coming hours).
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.