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Marginally Richer Start, Employment Data On Tap

AUSSIE BONDS

ACGB's have opened dealing 1-3bps richer across the major benchmarks. The curve has bull flattened.

  • This comes after the US Tsy curve flattened as the Fed kept rates steady, as expected. There was a hawkish tilt to the forward guidance with 12 out of 18 Fed officials expecting another 50bps of hikes later this year.
  • XM and YM are little changed in early dealing.
  • RBA dated OIS is stable, a terminal rate of ~4.50% is seen in November.
  • On the wires today we have the May Labour Market Report, the Unemployment Rate is seen holding steady at 3.70%. June Consumer Inflation Expectations will also cross.

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