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Dealing Near Session Highs Ahead Of China Data Dump

AUSSIE BONDS

ACGBS are dealing at or near Sydney session highs (YM flat & XM +2.0) ahead of China’s data dump, which includes Q2 GDP, June IP, and retail sales.

  • US tsy futures are trading slightly firmer in Asia-Pac trade. A reminder that cash tsys are closed in Asia today due to the observance of a national holiday in Japan.
  • There was no Australian data today.
  • Cash ACGBs are 1-2bp richer with the AU-US 10-year yield differential -7bp at +14bp.
  • The 3s10s swap curve flattens with rates flat to 1bp lower. EFPs are little changed.
  • The bills strip is cheaper with pricing flat to -2.
  • RBA-dated OIS pricing is 2-5bp softer across meetings.

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