Holding Cheaper Pre-NFP, Off Worst Levels

YM had a brief and shallow look below its overnight base before recovering from worst levels, last dealing -7.5, while XM has failed to challenge its on overnight base, also dealing -7.5 last, in what has been fairly limited Friday pre-NFP Sydney dealing.

• Cash ACGBs run 5-8bp cheaper across the curve, with the 5- to 10-Year zone leading the way lower.
• TCV has mandated banks to issue a new Sep-36 bond, which will launch and price “in the near future.” News of that round of semi-issuance crossed recently, with hedging flows in XM futures expected around pricing, as the line will be of benchmark size.
• The 3-/10-Year EFP box has seen some light twist flattening.
• Bills run 4-8bp cheaper through the reds.