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Lunar New Year Lull

BOND SUMMARY

T-Notes re-tested overnight highs in early trade and last sits +0-01+ at 136-31. The contract sticks to a narrow 0-02 range in a LNY-thinned trade, with all three e-minis slipping into negative territory. Cash Tsys are closed owing to the National Foundation Day holiday in Japan. Eurodollar futures trade +0.5 to -0.5 tick through the reds.

  • Australian YM trades -0.5 & XM sits +3.5 at typing. Cash ACGB curve has bull flattened, with yields last seen 0.1-4.6bp lower. Bills trade -1 to +1 tick through the reds. Comment s from RBA's Harper have provided some interest, with the policymaker playing down the risk of asset bubbles & outlining factors that will affect the decision on whether to extend the Reserve Bank's QE programme. The RBA offered to buy A$2.0bn of ACGBs with maturities between Nov '28 & May '32, excluding ACGB Apr '29 & ACGB Nov '31.

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