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Off Best Levels, Still Comfortably Richer On The Day

AUSSIE BONDS

A pullback in U.S. Tsys from best levels, a modest beat for domestic private sector credit data (accompanied by a marginal upward revision to May’s readings) and an uptick in PPI in Y/Y terms (+5.6% in Q2 vs. 4.9% in Q1), albeit accompanied by a modest moderation in the Q/Q rate, has ACGBs back from best levels, although the space is comfortably firmer on the day.

  • YM prints +17.5, while XM is +12.5, after both contracts moved to the highest level observed since April (based on continuation charts). Cash ACGBs run 6.5-17.0bp richer across the curve, bear steepening, with the belly maintaining its outperformance.
  • The 3/10-Year EFP box has twist steepened on the day.
  • Bills run 12-22bp richer through the reds, also back from best levels.
  • The AOFM weekly issuance slate will be released at the top of the hour.
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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