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Softer & Steeper

AUSSIE BONDS

Futures sit below settlement levels in early Sydney dealing, after cheapening alongside most of the U.S. Tsy curve during overnight trade. That leaves YM -2.5 & XM -5.5, with the former testing the base of its overnight range, while the latter has broken through its own overnight trough.

  • Local focus is set to move to Q3 completed construction work on Wednesday, in addition to A$1.0bn of ACGB Nov-32 supply. Participants will also look across the Tasman for any cross-market impact in the wake of the latest RBNZ decision, with the broad consensus looking for a 25bp hike (although the ~33bp of tightening priced into the OIS strip points to a non-negligible, ~34%, chance of a 50bp move).
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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