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Still Twisting Steeper

AUSSIE BONDS

The twist steepening dynamic remains in play, with the front end of the ACGB curve perhaps supported by the sheer degree of RBA policy tightening already priced into the short end (and a lack of willingness to add to that, without a fresh overt headline catalyst), while the weakness in U.S. Tsys and impending pricing of the ACGB Nov-33 syndication (which should take place today) applying some pressure further out. That leaves YM +3.5 & XM -6.5, with the cash curve twist steepening around the 5-Year point and a fairly parallel shift observed in 10+-Year paper. Bills run little changed to 7bp richer through the reds, helping to underpin YM.

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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