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Market Coils Into RBA

AUSSIE BONDS

The space has coiled ahead of today's RBA decision, looking through local data releases, with YM & XM both printing 1.0 tick above settlement levels at typing. As a reminder, focus is set to fall on the language that the Bank employs re: its bond purchase scheme, with the recent volatility and Monday's upscaling of its ACGB purchases providing some scope for the Bank to adopt a harder line re: bond buying and the enforcement of its 3-Year yield target. Shorter dated forward starting AUD swap spreads e.g. 1-Year/1-Year have retraced from the recent highs, printed in the midst of last week's vol., but haven't returned to pre-vol. levels.

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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