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Some Light Twist Flattening Apparent

AUSSIE BONDS

Futures held to narrow ranges overnight, akin to U.S. Tsys, with a drift lower in XM apparent in the wake of the BoC decision, which was at least partially unwound as we moved through the latter rounds of NY trade. The futures curve experienced some very modest twist flattening overnight, with YM -1.0 & XM +1.0 in early Sydney trade, roughly in line with overnight closing levels.

  • Sino-Aussie tensions got some airing after the Sydney close, with Victoria's decision to sign up to China's Belt and Road initiative now formally reversed.
  • There is little of note on the local docket on Thursday, outside of the scheduled round of ACGB purchases from the RBA.
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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