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Softer Data Prints Fuel Pop In ACGBs

AUSSIE BONDS

Aussie bond futures rally on softer Q4 GDP and a substantial, broad-based miss for January monthly CPI which came in at +7.4% Y/Y versus +8.3% in December and BBG consensus forecast of +8.1%. YM +7.0 & XM +3.5. Cash ACGB yields now sit 2-6bp lower on the day with the curve 2bp steeper. A similar move is seen in swaps. Bills move into positive territory excluding IRH3, now -1 to +9 through the reds after being cheaper by 2-5bp ahead of the data. RBA dated OIS is 3-7bp lower for meetings beyond May led by November. Terminal rate pricing drops to ~4.25% from 4.33% pre-data.

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