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Cash ACGB Yields Jump On Return From Holiday, Post-FOMC Impetus In Play

AUSSIE BONDS

ACGB yields shot higher as cash trading re-opened after an Australian holiday, with the space digesting the Fed's hawkish pivot. The interplay between the prospect of more aggressive Fed action and mounting inflationary pressure in both Antipodean economies has generated selling pressure, which hit Aussie bonds in early Sydney trade.

  • The yields on ACGBs sit 6.5-9.0bp higher across the curve in cash trade, with 3s and 10s leading losses. Main futures contracts have extended their post-FOMC retreat as daytime trading reopened; YM last trades -7.5 & XM -6.0. Bills trade 2-10 ticks lower through the reds.
  • There are no local data releases left on this week's calendar, which turns focus to the supply of ACGB May '32 slated for Friday.

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