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Trans-Tasman Matters At The Fore Ahead Of RBA

AUSSIE BONDS

YM & XM both -3.0 at typing, with the previously flagged leg higher in crude oil futures and another of the NZ big 4 (BNZ) joining the RBNZ will hike in November '21 camp applying some fresh pressure to YM. The 5-Year sector leads the cheapening in the cash ACGB space, with 5-Year yields ~4.0bp higher on the day (the NZ curve has been subjected to some bear flattening given the aforementioned RBNZ calls from the sell-side). A reminder that the belly is expected to be the hardest hit area of the curve if the RBA provides a hawkish surprise at today's monetary policy decision.

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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