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AUSSIE BONDS

U.S. Tsy market gyrations allowed the Aussie bond futures curve to bull steepen in post-Sydney trade. The contracts have seen some marginal firming in early Sydney dealing but they operate comfortably off of their overnight peaks after pulling back from best levels alongside U.S. Tsys, leaving YM +9.0 & XM +6.5.

  • Bills are 1-14 ticks higher through the reds, with the the reds outperforming.
  • Wednesday’s local data docket will be headlined by Westpac consumer confidence data, while the latest RBNZ monetary policy decision will likely provide some trans-Tasman impetus (note that 43bp of tightening is priced into the OIS strip, although only 5 of the 22 surveyed by BBG look for such a move in the OCR, with the remaining 17 looking for a 25bp hike).
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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