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No Support From Month-End

AUSSIE BONDS

The curve has steepened a touch in early Sydney trade, YM -1.5 and XM -3.0 at typing, with the cash space following suit, although swaps have lagged the move across the curve, allowing spreads to tighten. Expect little in the way of notable support from month-end extensions, given the fact that the ACGB indices should contract, not extend, as we move into October.

  • Bills 1-2 ticks lower through the reds.
  • A$2.0bn worth of ACGB 1.00% 21 December 2030 supply is due today, as are the monthly private sector credit and building approvals readings. Chinese PMI data will also provide a point of interest for the space from further afield, in addition to the Trump-Biden debate.
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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