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Tight Ranges Observed

AUSSIE BONDS

A particularly rangebound session for the ACGB space saw the early session boundaries prevail for both YM & XM, with a modest uptick in the latest round of domestic weekly consumer confidence data and softer than expected NZ retail sales print from across the Tasman failing to provide any meaningful impetus for the space.

  • That leaves YM -1.5 and XM at unchanged levels as of typing. Wider cash ACGB trade sees the longer end of the curve outperform, with 30s richening by ~1bp on the session.
  • EFPs are incrementally wider on the day, with the 3-/10-Year box flattening.
  • The IR strip runs -2bp to +1bp through the reds.
  • Q1 completed construction work, an address from RBA Assistant Governor (Economics) Ellis on “Housing in the Endemic Phase” & A$300mn of ACGB Jun-51 supply headline domestically on Wednesday.
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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