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Regaining Some Poise

AUSSIE BONDS

The wider ACGB curve has bull flattened in early trade this week, with Aussie bond futures recovering some poise after their early downtick, akin to U.S. Tsy futures, although tier 1 news flow has been virtually non-existent since the re-open of markets. As a result, YM last deals +3.0, while XM is +6.0 (both contracts have failed to challenge their respective post-Sydney settlement peaks registered ahead of the weekend). The richening beyond 10s is fairly consistent when it comes to cash ACGB trade, with 12+-Year benchmarks ~6.5bp richer on the day. EFPs have tightened, with the move in 3s outstripping that in 10s, leading to some steepening of the box. Bills run 2-7bp richer through the reds, aided by the aforementioned recovery in bonds.

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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