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Holding Lower

AUSSIE BONDS

YM & XM hover just above worst levels of the Sydney session after failing to hold a meaningful bid on the back of the aforementioned downtick in e-minis, which stemmed from a BBG report noting that “the US and Taiwan are planning to announce negotiations to deepen economic ties.” YM -5.5 & XM -7.0 as a result. There has been no reaction to the aforementioned round of solid ACGB Jun-31 supply, with participants now looking to retail sales data for April, due at the bottom of the hour (BBG median +1.0 M/M vs. the +1.6% seen in March). Broader cash ACGB trade sees a similar degree of bear steepening when compared to what is observed on the YM/XM curve. EFPs are a touch wider on the day, with the 3-/10-Year EFP box flattening at the margin. Bills run 2-8 ticks below settlement levels through the reds.

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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