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Cheapening Momentum Remains In Play

AUSSIE BONDS

Thursday’s general cheapening for core global FI markets has extended, with ACGBs pacing the moves in their U.S. Tsy counterparts, as the 10-Year yield spread between debt of the two nations hovers around +15bp. The general cheapening has allowed YM & XM to move through their overnight session lows, to print -8.0 and -5.0, respectively, with the former at worst levels and the latter just off its Sydney base. Wider cash ACGB trade sees 4-7bp of cheapening, with bear flattening in play. EFPs are little changed on the day. Bills are 2-7bp cheaper through the reds, with the back end of the whites and front end of the reds leading the move.

  • Local news flow has been light, headlined by generally in-line with expected private sector credit data.
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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