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Lower In Early Sydney Dealing

AUSSIE BONDS

The late overnight bid has fallen out of the space, which isn't particularly surprising given the fact that it seemed to be driven by the month-/quarter-end dynamic witnessed in the U.S. Tsy space and U.S. Tsy futures have moved off of their late NY peaks in early Asia-Pac trade. This leaves YM -1.5 and XM -0.5, with a lack of headline flow observed to justify the move, giving further credence to the idea that the move is based on what has been seen in U.S. Tsys. 5s lead the weakness in the cash ACGB space, running ~1.5bp cheaper on the day.

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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