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Cash Flows Providing Extra Support

AUSSIE BONDS

With the previously alluded to Fedpseak & COVID situation in China providing macro support, allowing ACGBs to move away from session cheaps, we should also flag cash flow support for the ACGB space today. A$26.5bn of ACGB Nov-22 matures today, with a cumulative ~A$3.98bn of coupons also due to be paid out across the cash ACGB complex. Cash ACGBs run 1bp cheaper to 1bp richer across the curve, twist flattening, with a pivot around the 12-Year sector. EFPs are biased wider at the margin. Bills sit flat to -3 through the reds, moving away from steepest extremes of the session.

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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