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Pre-RBA Weakness Noted

AUSSIE BONDS

The early steepening pressure extended after our earlier bullet, with XM leading the way lower, although YM has played some catchup since, with jitters ahead of today's RBA decision noted. YM -4.0 & XM -5.5 at typing. Longer end cash ACGB yields sit 8bp higher on the day. ACGB Apr-24 currently yields ~0.71%, 8bp or so shy of Friday's high, with the RBA expected to drop its yield targeting mechanism come the end of today's monetary policy decision. A quick reminder that the Bank has a 0.10% yield target for ACGB Apr-24, although last week's inaction when it came to the Bank enforcing the target and the resultant surge in yields has resulted in the aforementioned consensus forming re: the future of YCT, with the target now ultimately defunct.

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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