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RBA Holds Off On YCT

AUSSIE BONDS

Fresh pressure for the front end of the curve as the RBA chooses not to enforce its ACGB Apr-24 yield target today, with the yield on that line surging as high as 0.2575% in reaction (over 15bp above the RBA's target). YM traded as low as 98.685 (implied yield of 1.315%), last -14.5 at 98.720. XM has also been dragged lower, last dealing -3.0. There will be plenty of questions doing the rounds re: the future of YCT owing to the RBA's inaction today, heightening speculation re: the matter ahead of next week's RBA meeting. Will the RBA choose to step in tomorrow?

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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