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Firmer & Flatter To Start The New Year On Chinese Economic Growth Worry

AUSSIE BONDS

Aussie bonds failed to better their early Sydney best levels, which came as a product of the vol. that surrounded the re-open of U.S. futures, with the previously alluded to turnaround in fortunes for Hong Kong’s Hang Seng Index seemingly allowing the space to nudge further away from best levels.

  • Still, worries surrounding immediate Chinese economic growth prospects seemed to provide a stickier bid for core global FI markets, with the latest batch of Chinese PMIs fanning those flames.
  • That left YM +3.0 and XM +5.0 at the bell, while the major cash ACGB benchmarks are 2.5-6.0bp richer, with the early flattening impulse intact throughout.
  • EFPs were little changed to a touch wider on the day.
  • Lower tier domestic data crossed in the shape of final Judo Bank manufacturing PMI & CoreLogic house prices, with the former revealing the slowest rate of expansion seen since ’20 and the latter providing an expected extension of the recent pull lower in property prices.
  • Looking ahead, Thursday’s final Judo Bank services and composite PMI data headline the limited domestic data docket during the remainder of the week. A reminder that details on AOFM issuance plans for the second half of 22/23 will be provided on Friday.
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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