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Spill Over From Antipodean Rates Provides Some Support After Early Shunt Lower

US TSYS

Antipodean impulses continue to help the Tsy space, with a lack of hawkish surprises in the RBNZ post-meeting statement & MPS providing some light support for NZGBs, allowing Tsys to build on the Australian data-inspired uptick from session cheaps. The presence of unscheduled BoJ Rinban purchases to defend the latest breach of the Bank’s YCC parameters is probably providing some incremental help, although the reaction in JGBs has been muted, at best. Cash Tsys run 1.5-3.0bp richer across the curve, with the front end leading and belly lagging. TYH3 trades just off best levels +0-03 at 117-05.

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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