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Limited Downward Impulse From NZ CPI

AUSSIE BONDS

Futures a touch lower in the wake of the blowout Q2 CPI print from across the Tasman, with YM -1.0 and XM at unchanged levels. We have flagged some the potential hurdles for a break higher in XM i.e. technical resistance and the addition of longs yesterday, although we do reiterate that the post-NZ data dip has been shallow, with the RBNZ-RBA tightening divergence clear. The AU/NZ 2-Year swap spread has moved to fresh cycle lows in the wake of the data release.

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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