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Bull Steepening Observed

AUSSIE BONDS

Aussie bond futures ultimately bull steepened overnight, leaving YM +4.5 & XM +1.5 shortly after the Sydney re-open, operating a touch above late overnight session levels as local participants react to developments since Wednesday’s settlement.

  • Gyrations surrounding U.S. CPI data & Fedspeak were in the driving seat during post-Sydney trade. The initial leg higher seen in the wake of the data was mostly unwound as we worked through NY trade, aided by a similar move in U.S. Tsys.
  • Note that the initial post-data bull steepening in U.S. Tsys morphed into twist steepening as the bid faded during NY dealing.
  • Bills run 2-5bp richer through the reds.
  • Consumer inflation expectations data headlines the domestic docket on Thursday.
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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