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Just Off Best Levels, Cash Flow & Macro Backdrop Support

AUSSIE BONDS

Aussie bond futures hold a touch shy of their respective Sydney peaks, with the light widening bias in EFPs perhaps partially indicative of the deployment of the cash from the maturity of ACGB Nov-22 and notable coupon payments in the ACGB sphere. YM is now flat on the day, while XM is +2.0. Wider cash ACGB trade sees 1-4bp of richening across the curve, with the super-long end outperforming. Local headline flow remains light, leaving the aforementioned cash flow and macro drivers (most notably the COVID situation in China) at the fore.

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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