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Off Lows As Lowe Points To 25 Or 50 Bp Move In July

AUSSIE BONDS

ACGBs pull away from worst levels on the back of RBA Governor Lowe indicating that the RBA will likely discuss a 25 or 50bp cash rate target move in July, seemingly playing down the chances of a 75bp rate hike when questioned on the chances of such a move. Note that the IB strip is currently pricing in a 57bp hike at the Bank’s July meeting, per the BBG WIRP function, with a cumulative ~300bp of tightening priced through the remaining 6 meetings of ’22.

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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