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Richer Start, Q3 WPI On Tap

AUSSIE BONDS

ACGBs have opened dealing 8-11bps richer across the major benchmarks, the belly is marginally outperforming. Support to the wider space has been seen in early dealing after a rally in US Tsys in lieu of a softer than forecast October CPI print.

  • Futures are a touch firmer this morning XM (+0.1150) and YM (+0.09).
  • RBA dated futures are steady, a terminal rate of 4.45% is seen in June 24 with ~15bps of cuts by Dec 24.
  • On the wires today we have Q3 Wage Price Index, an increase of 1.3% Q/Q is expected. The prior read was 0.8% Q/Q.

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