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Curve Re-Opens Flatter

AUSSIE BONDS

ACGBs have re-opened after being closed yesterday for the observance of a national holiday and sit 3bps cheaper to 3bps richer across the major benchmarks. The curve has twist flattened pivoting on 10s.

  • XM and YM are both little changed in early dealing. AU-US 10-year yield differential sits 2bps narrower.
  • US Tsys were marginally richer yesterday, however recent ranges were respected as the market awaits US CPI today.
  • The bills strip is little changed thus far.
  • RBA dated OIS price a terminal rate of ~4.45% in November.
  • On the wires today we have May CBA Household Spending, Westpac Consumer Confidence for June and the May NAB Business Survey. There is an auction for A$150mn of 0.25% 2032 Linkers.

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