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Off Post-GDP Lows

AUSSIE BONDS

The space was quick to retrace its GDP-inspired downtick. Ahead of the release we noted that the market's response function was likely asymmetric with a downside surprise having the potential to create more of a sustained reaction than the upside surprise that was seen (owing to the recent rounds of better than expected data). The market has traded in a sidewards manner since recovering form worst levels. YM -0.5, XM +2.5 at typing, with the curve flattening maintained. The 10-/12-Year sector outperforms in cash trade.

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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