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AUSSIE BONDS

Bond futures operate just above their late overnight session lows, with little in the way of overt market reaction to weekend reports pointing to Australia’s international border being fully re-opened within a few weeks (with one minister pointing to the need to open the borders as soon as possible, while there are reports that the cabinet will meet to discuss the matter later on Monday). A quick reminder that the weakness in the final overnight session of last week was driven by a much stronger than expected U.S. NFP print. YM -9.5 & XM -7.5 as a result, with cash ACGBs bear flattening, akin to U.S. Tsys post-NFPs. Bills run 1-12 ticks lower vs. settlement through the reds.

  • Today’s local docket will be headlined by Q4 retail sales volumes, the latest scheduled round of RBA ACGB purchases and A$500mn of ACGB May-41 supply. Elsehwere, it will be worth keeping an eye on the latest round of Caixin services & composite PMI readings out of China, although these datapoints haven’t pushed markets around in recent months.
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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