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Early Richening Develops Further

AUSSIE BONDS

The richening seen in U.S. Tsys since their cash open and the well-received round of ACGB Sep-26 supply have provided further fuel to the upside momentum witnessed in early Sydney trade, leaving YM +6.0 & XM +10.5, at best levels of the session. Wider cash ACGB trade sees 5-12bp of richening as the curve bull flattens. The 3-/10-Year EFP box has flattened, with 3-Year EFPs little changed and 10s narrower vs. Sydney closing levels. That suggests that receiver side flows in swaps are aiding outperformance in the longer end of the curve.

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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