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Dip Reversed

AUSSIE BONDS

The early cash rate/Kennedy/U.S. Tsy-inspired dip has been unwound, with the dip well and truly bought. YM is now +0.5 on the day, 15.0 ticks off lows, with XM +3.0, 7.5 ticks off its own lows.

  • YM/XM traded as flat as 24.5, bear flattening further, before bouncing back to deal at 32.0 last.
  • The IR strip is -2 to +3 through the reds.
  • The cash rate setting at 9bp is a bit of a head scratcher, yes it was month/quarter end, but there has been no sign of borrowing stress when it comes to BBSW fixings over the last couple of days. We will continue to dig into the matter.
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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