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Flatter, Tick Sizes Narrow Into Expiry, Roll Picks Up

AUSSIE BONDS

The futures curve flattened overnight, with the impetus from U.S. Tsy trade spilling over (the driver of the initial richening was a peculiar widespread website outage). YM +0.1, XM +2.5 at typing, with narrower ticks now in play as we approach the expiry of the M1 contracts. With tick size narrowing roll activity picked up overnight and XM activity continued in early Sydney dealing, with ~260K lots of XMM1/U1 dealing since yesterday's settlement.

  • A$1.0bn of ACGB 1.00% 21 Nov '31 supply is due on Wednesday, as is Westpac's monthly consumer confidence reading & ABS payrolls data. Elsewhere, RBA Assistant Governor Kent will appear at the KangaNews Debt Capital Markets Summit.
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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