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Edging Away From Cheaps


Aussie bonds find a bit of a base alongside U.S. Tsys, working away from early Sydney cheaps, leaving YM -7.0 & XM -9.5, while wider cash ACGBs run 5.5-9.5bp cheaper, with the 7- to 12-Year zone providing the weakest point on the curve. EFPs are a touch wider on the day, with the 3-/10-Year EFP box steepening, pointing to payside swap flows weighing on ACGBs. Bills are also off session cheaps, running 4-10bp lower through the reds. A marginally narrower than expected trade surplus (which remains wide by historical standards) has had little impact on the space.

MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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