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Holding Firmer

AUSSIE BONDS

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.
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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