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Off Best Levels

AUSSIE BONDS

ACGBs have backed away from session highs as the earlier bullish impetus from the overnight bid in Aussie bond futures has moderated, with the move aided by a limited downtick in U.S. Tsy futures (TYZ2 ultimately continues to trade within the confines of a 0-04+ range).

  • Cash ACGBs run 1.0-3.5bp richer across the curve, with 10s leading the way higher.
  • YM is +1.5 and XM is +3.5, with both contracts back from a brief blip higher, having failed to challenge their respective overnight peaks. EFPs are little changed, while Bills run 1 to 5 ticks richer through the reds.
  • There was little by way of a meaningful reaction observed in ACGBs on the release of results from the auction of A$700mn of ACGB Sep-26.

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