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Pulling Lower Ahead Of Labour Market Report

AUSSIE BONDS

The pull lower in ACGBs has extended ahead of the impending labour market report, with expectations for a positive rebound in headline employment noted (BBG survey range of -5K to +45K, median +20K). That leaves YM testing its Wednesday base, -10.0, while XM is showing at the lowest level observed since early January, -13.0. The AU/U.S. 10-Year yield spread has widened back beyond +5bp as a result. The move in bonds is leading swaps, with EFPs a touch narrower on the day. The Bill strip has twist steepened alongside the pull lower in bonds, showing +1 to -8 through the reds, while RBA-dated OIS terminal cash rate pricing is once again showing above 4.20%.

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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