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Off Lows On Labour Market Data

AUSSIE BONDS

It looks like the larger than expected uptick in the unemployment rate is supporting the space, leaving YM -12.0 and XM -7.0 at typing. Both contracts sit comfortably off their post-data highs, likely on the fact that the uptick in unemployment is at least in part due to an uptick in the participation rate as more people look for work as lockdown restrictions ease (good news!). Markets will be very sensitive to labour market data in the coming months, owing to the degree of RBA hikes priced into the market, which we remind you is very aggressive when compared to the Bank's own forward guidance.

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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