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Strengthen After RBA Minutes

AUSSIE BONDS

ACGBs richen to session bests (YM +5.0 & XM +3.5) after the RBA Minutes confirmed that the Board would “reconsider the case for a pause” at the April meeting. At the time of writing, cash ACGBs were 4-6bp richer with the 3/10 curve 2bp steeper.

  • Swaps rates are 2-3bp lower across the curve with the 3s10s curve 1bp steeper and EFPs 3bp wider.
  • Bills strip twist flattens with pricing -3 to +3.
  • RBA dated OIS pricing is 4-8bp softer for meetings beyond June with 46bp of easing priced by year-end.

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