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The softer than expected PMI data out of China provided a light bid for the space, with the longer end benefitting a little more than the shorter end, as XM registered a fresh Sydney high, while YM was capped by its post-CPI peak. That leaves the former +7.0 & the latter +3.0, with the post-CPI bull steepening dynamic intact. Cash ACGBs run 3-7bp richer through the reds, with the 10- to 12-Year zone lagging within the broader bid.
- Bills run 2-10bp richer through the reds, while RBA dated OIS is little changed after a modest tick lower in the wake of the monthly CPI print, suggesting that market participants don’t see the downtick in inflation (to still elevated levels) as a gamechanger for RBA policy, at least in terms of this one print in isolation.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.