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Curve Steeper On U.S. NFPs, RBA Set To Return To Market

AUSSIE BONDS

A flat start for futures, operating around their overnight closing levels, leaving YM -0.5 and XM -4.5 at typing. A quick reminder that the overnight curve steepening was driven by spill over from U.S. Tsy price action in the wake of the latest U.S. NFP print. The futures contracts then eased away from overnight lows into the bell, once again on the dynamic observed in the U.S. Tsy space.

  • Weekend headline flow was dominated by news that new Australian COVID cases declared on one day topped 100K for the first time.
  • On the issuance front, CBA are taking IOIs for 5-Year senior floating and/or fixed rate A$ paper.
  • Monday’s local docket will be headlined by building approvals data, with the latest Melbourne Institute inflation readings also due. Also note that the RBA will resume its bond buying operations from today.
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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