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Pressured By A Confluence Of Factors

AUSSIE BONDS

Aussie bond futures have stabilised off of lows, at least for now, with YM last printing -4.5 (4.0 ticks off of lows) and XM -12.0 (1.5 ticks off of lows). There seemed to be several factors that have intertwined to drive the latest leg of weakness:

  • The market being disappointed with the size of RBA purchases employed to enforce the Bank's 3-Year ACGB yield target.
  • Stronger than expected local CapEx data.
  • Trans-Tasman impetus after the tweak to the RBNZ's remit, with the Bank now set to consider "the impact on housing when making monetary and financial policy decisions."
  • We are also on the lookout for the pricing of WATC's benchmark '30 issuance.
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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