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Off Cheaps Alongside Tsys

AUSSIE BONDS

The aforementioned tick away from session cheaps in U.S. Tsys has leaked into ACGBs. As we noted elsewhere, there hasn’t been an overt catalyst for the move, with the weakness in equity markets perhaps turning supportive for bonds, after initially being triggered by higher Tsy yields post-PPI. YM is -3.4 while XM is -7.1. Wider cash ACGB trade sees the major benchmarks running 2.5-8.5bp cheaper as the early bear steepening holds.

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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