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Cheaper, Off Cheaps, Little Changed After Retail Sales Miss

AUSSIE BONDS

ACGBs are weaker (YM -7.0 & XM -6.0) but holding above session lows after retail sales print unchanged m/m (estimate +0.3%) in April.

  • “Retail turnover has plateaued over the last six months as consumers spent less on discretionary goods in response to cost-of-living pressures and rising interest rates.” According to the ABS.
  • Cash ACGBs are little changed after the data, sitting 5-6bp cheaper on the day.
  • Swap rates are similarly 5-6bp higher on the day with EFPs little changed.
  • The bills strip is steeper with pricing flat to -8.
  • RBA-dated OIS pricing is unchanged after the day sitting 1-3bp firmer for meetings beyond August.

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