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Flatter, As Worries About Crowded Longs Dissipate

AUSSIE BONDS

XM has been bid in recent trade, pushing through overnight highs, allowing another round of modest curve flattening, building on the impetus witnessed during SYCOM hours. YM +0.5, XM +4.0, with the recent worry re: crowded longs on the latter's dip below 99.00 a distant memory, at least for now.

  • Earlier today Australian Treasurer Frydenberg told ABC that the planned tax cuts will be moved forward. He also noted that the government is considering its options surrounding superannuation guarantees.
  • Bills unchanged to +2 through the reds.
  • Monthly trade balance data headlines the local docket today. Elsewhere, the RBA's window for ACGB purchases is open, although such purchases seem unlikely, given the light richening of 3s & 4s over the last 24 hours or so, combined with the fact that the RBA did not choose to purchase bonds yesterday.
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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