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Cheaper Overnight, China Matters & Supply Eyed

AUSSIE BONDS

The spill over from front-loaded China stimulus hopes weighed on Aussie bond futures during overnight dealing, while local news flow has been dominated by confirmation that Friday will see the Australian Foreign Minister meet with her Chinese counterpart for the first time since ’19. The bilateral meeting will take place on the sidelines of the G20 gathering, with the Australian representative flagging a desire to stabilise relations between the two nations. Tariffs levied on Australian goods by China, Australia’s curbs re: Chinese investment and geopolitics (Ukraine War and the Pacific Islands) will likely present the focal point of today’s discussions.

  • Aussie bond futures operate around late overnight levels shortly after the Sydney open, with YM -7.0 and XM -3.5, just above their respective overnight bases. Bills run 4-11bp cheaper through the reds.
  • A$700mn of ACGB Nov-24 supply headlines the domestic docket on Friday, with the release of the weekly AOFM issuance slate also due.
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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