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Curve Bear Flattens On Wednesday, May Labour Report Due Tomorrow

AUSSIE BONDS

ACGB's sit 3-9bps cheaper across the major benchmarks, the curve has bear flattened. The spillover from Tuesday's core global FI cheapening weighed at the open and held through the session.

  • Futures are a touch lower, XM (-0.035) and YM (-0.066), however ranges have been narrow thus far today.
  • RBA dated OIS remains stable, pricing a terminal rate of 4.49% in December.
  • Rabobank Rural Confidence Index improved slightly in Q1 to -22 from -25 as Rabobank noted that farmers are adjusting to a normalisation in economic conditions.
  • Looking ahead, on the wires tomorrow we have the May Labour Market Report. The Unemployment Rate is expected to hold steady at 3.7%. June Consumer Inflation Expectations is due.

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