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Marginally Firmer

AUSSIE BONDS

Aussie bonds have firmed a touch, aided by a light bid in the wider core global FI space, as JGB market participants look ahead to tomorrow’s JGB decision and U.S. Tsy markets readjust after the long weekend, perhaps with a bias to looking to the short covering that took place in JGBs on Monday. That leaves the major cash ACGB benchmarks running 0.5-3.0bp richer, with the front end leading as the curve bull steepens. Meanwhile, YM is +2.0 & XM is +0.5. EFPs are in a touch vs. yesterday’s closing levels, suggesting receiver side swap flow is aiding the bid in bonds.

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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