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Overnight Flattening Bias Holds

AUSSIE BONDS

The curve is flatter vs. settlement at the start of a new trading week after choppy overnight trade saw the space take cues from U.S. Tsys ahead of the weekend. YM +2.5, XM +4.0, with the latter a touch lower than its late SYCOM levels, likely linked to U.S. fiscal developments and potentially showing some spillover from Yemeni Houthi attacks on Saudi Aramco crude oil facilities (although the facilities in question were said to be untouched).

  • The bulk of this week's domestic focus is set to fall on the latest address from RBA Governor Lowe, scheduled for Wednesday, titled "The Recovery, Investment and Monetary Policy."
  • A reminder that several Australian states are observing regional holidays on Monday, which could thin out participation.
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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