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Tight, With Tokyo Shut For Holidays

BOND SUMMARY

T-Notes have stuck to a tight range, even as all three main e-mini contracts have moved higher, following some positive musings re: Covid-19 vaccine/treatment matters. There has been little of note in the way of fresh headline flow and T-Notes last trade -0-00+ at 138-15+. Cash Tsys are closed until the London open, as Japan observes a public holiday. Eurodollars trade unch. to -0.5 tick through the reds.

  • Australian YM is unch. & XM trades -0.5 tick after edging lower. In cash space, belly underperforms as yields trade -0.4bp to +0.5bp across the curve. Bills last seen unch. to -1 tick through the reds. Preliminary readings of Australian Markit PMIs showed a faster rate of expansion across all three main indices, despite "subdued rise in new business". On the news front, Victoria & South Australia loosened their social restrictions, while NSW re-opened its border with Victoria. Meanwhile, the RBA offered to buy A$2.0bn worth of ACGBs, covering maturities of ACGB Nov '24 - May '28, excluding Sep '26.

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