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Light Bid On Lack Of Hawkish Rhetoric From RBA’s Ellis

AUSSIE BONDS

RBA Assistant Governor (Economic) Ellis fails to provide a hawkish signal re: the level of the neutral cash rate in her latest address, with nothing in the way of meaningful deviation from Governor Lowe’s previously outlined musings on the matter.

  • This allows Aussie bond futures to tick higher, YM +4.5 & XM +3.5, with 3-5bp of richening observed in wider cash ACGB trade, as the super-long end lags the bid, resulting in some light bull-steepening post-Ellis.
  • Bills have firmed a touch and run 1-5 ticks richer through the reds, with RBA dated OIS terminal rate pricing off a couple of bp, back just below 4.00%.
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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