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JGB TECHS

(Z1) Bearish Trend Condition

AUD

Finished Higher, Held Below $0.73

AUSSIE BONDS

A Little Steeper Overnight

Firmer & Flatter Post RBA

AUSSIE BONDS

The RBA's move to prevent any further unwanted tightening of financial conditions caught most off guard, as it announced a A$100mn 6-month extension of its bond buying scheme from mid-April (when the current scheme is set to run dry). This has allowed the space to more than reverse its early steepening, with YM unchanged and XM +3.0, as the latter operates 1.0 off its reaction highs. The cash ACGB curve sees 30s run a little over 3.0bp richer, with longer dated ACGBs unwinding most, if not all, of their early underperformance vs. swaps. Aussie 10s sit 3.5bp tighter on the day vs. their U.S. counterpart, last printing at +3.5bp.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com