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NAB Recommend Long Sep 30 ACGB Breakevens

AUSSIE BONDS

NAB note that "ACGB breakeven widening slowed from mid-December, underperforming many offshore markets. The domestic outlook remains strong, and we are expecting sovereign bond yields to rise materially over the coming months. The Sep-30 ACGB breakeven is at 1.81%, and we expect it to widen materially as rates sell off and the macro backdrop firms up this year. We recommend buying the Sep-30 BEI at the current level of 1.81%, targeting a level of 2.10%. The key risk is that the global recovery stalls and bond yields fall."

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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