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Light Bid After Labour Market Report

AUSSIE BONDS

A relatively modest uptick for Aussie bond futures in the wake of the surprise fall in the headline employment figure within July’s domestic labour market report, with caveats surrounding floods, school holidays and elevated illness levels limiting the size of the reaction, with futures off their initial knee-jerk highs. YM is -2.0 last & XM is -5.0 last, with cash ACGB trade seeing 3-5bp of cheapening across the curve in net terms on the day. Bills now sit +1 to -5 through the reds, twist steepening. Sep RBA meeting pricing is unchanged, with ~42bp of tightening still priced in RBA dated OIS.

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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