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Cheaper, Narrow Range

AUSSIE BONDS

ACGBs are holding weaker (YM -2.0 & XM -0.5) after trading in a relatively narrow range in the Sydney session. Without economic data and meaningful news flow, the local market has been content to sit cheaper following the weaker lead from US Tsys in trade ahead of the weekend. US Tsys are little changed in Asia-Pac trade.

  • The local market is closed tomorrow for the ANZAC Day holiday, ahead of Q1 CPI on Wednesday.
  • Cash ACGBs are 1-2bp cheaper with the 3/10 curve 1bp flatter and the AU-US 10-year yield differential -3bp at -9bp.
  • Swap rates are flat to 1bp higher with EFPs slightly tighter.
  • Bills strip is steeper with pricing -1 to -4.
  • RBA dated OIS is flat to 2bp firmer across meetings with a cumulative 22bp of tightening priced by August.
  • The Global Times reported that an industry delegation from Australia, consisting of about 15 senior business executives across a range of sectors including financial services, healthcare, mining, energy, telecommunication and technology, will head to China this week for a tour, the first of its kind in three years.

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