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Twist Flattener, In Sympathy With U.S. Tsys

AUSSIE BONDS

Moves in the U.S. Tsy space dragged Aussie bond futures flatter in the final overnight session of last week, leaving YM -2.0 and XM +3.5 at the end of after-hours dealing.

  • A reminder that the change in RBA call from Westpac Chief Economist Evans provided some pressure for the front end of the curve late on in Friday's Sydney trading session, although that move did fade a little into the close, with YM's Sydney lows not tested until the very end of the overnight session.
  • Local focus has fallen on the latest COVID cluster in Sydney, with seven districts of the city now deploying mandatory indoor mask wearing requirements. The cluster is still very limited in size.
  • Elsewhere, Saturday saw Australia note that is was formally lodging a complaint with the WTO re: Chinese anti-dumping duties on Australian wine exports.
  • Preliminary retail sales data headlines the local docket today.
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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