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The PBoC's decision to only............>

BOND SUMMARY: The PBoC's decision to only partially role some of the maturing
1-Year MLF, coupled with a steady interest rate being applied to the operations,
leant some support to core global FI. Elsewhere, the minutes from the RBA's
latest MonPol decision kept the door open re: further easing, with a slightly
firmer tone/seemingly lower bar re: further loosening & a broader scope of focus
(with the latter being identified at the time of the decision).
- T-Notes last deal +0-04+ at 129-06+, with yields 1.6-2.4bp lower across the
curve. Eurodollar futures sit 0.5 to 4.0 ticks higher through the reds.
- In Australia YM +5.5, with XM +6.5, leaving YM/XM at 29.0 and the cash
equivalent at 25.4bp. Bills run 1-4 ticks higher through the reds.
- JGB futures are 10 ticks above settlement levels, with the cash curve
experiencing some light bull flattening. The BoJ left the size of its 1-5 Year
JGB purchases unchanged vs. the previous operations. The 1-3 Year operations saw
an offer to cover ratio of 3.35x (prev 2.21x) while the 3-5 Year operations saw
an offer to cover ratio of 2.79x (prev. 2.72x). The average spreads across both
buckets moved back into negative territory.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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