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Front End Catches Up

AUSSIE BONDS

YM operates around best levels, while XM is marginally shy of its Sydney high. The space has looked through the previously outlined Chinese economic data and a vanilla weekly ACGB issuance slate that was outlined by the AOFM (consisting of A$1.5bn of ACGBS & A$2.5bn of notes). YM last deals +1.5, while XM is +0.5. Cash ACGBs run 1-2bp richer across the curve, with 5s providing the firmest point after today’s well received ACGB Apr-27 supply. A quick reminder that the reallocation of the cash received on the back of the maturity of ACGB Jul-22 may have aided the front end, allowing the previously flagged twist flattening to unwind.

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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