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AUSSIE BONDS

Bond futures operate around levels observed into the close of the final overnight session of last week, leaving YM +4.0 and XM +6.5.

  • All in all, there hasn’t been much in the way of “net” change when it comes to the Russia-Ukraine standoff, with western powers still on heightened alert re: the situation (the U.S. continues to warn of the likelihood of an attack in the coming days). Note that the trilateral contact group, Russia, Ukraine and the OSCE, will meet on Monday.
  • Looking to domestic factors, A$500mn of ACGB Jun-35 supply is due later today. A reminder that Q4 wage price data is due on Wednesday, providing the focal point of this week’s domestic docket given the RBA’s continued assertions re: the need for a pickup in wage growth. The Bank has continually pointed to the “3 point something” area in wage growth as a likely requirement for providing sustainable underlying inflation in the top end of its target band. Note that the BBG median looks for +2.4 in Q4 Y/Y wage growth, well short of the RBA’s ideal scenario.
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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