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Long end outperformance in the wake....>

AUSSIE BONDS
AUSSIE BONDS: Long end outperformance in the wake of the RBA's monetary policy
decision and U.S. equity sell off has flattened the curve, with XM reversing all
of the contract's RBA-inspired losses on SYCOM. Interpolated OIS now price a
~70% chance of at least 1 cut by the end of the RBA's August meeting.
- YM last trades 4.0 ticks above settlement, with XM +3.0 ticks. YM/XM trades at
48.5 ticks, with the cash equivalent at 44.7bp.
- Bills trade 1-3 ticks higher through the reds. Focus will fall on today's BBSW
fixing & rates in the RBA's repo ops after yesterday's monetary policy decision
resulted in no change.
- ACGB 2029 supply and Chinese trade data present the highlights for
participants today.
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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