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Twist Steepening

AUSSIE BONDS

Aussie bonds have edged lower after the initial uptick at the Sydney re-open. Wednesday’s post-Sydney developments (fleshed out previously and centred on the U.S.) remain front and centre, with a lack of fresh news flow evident since Thursday’s session got underway. Cash ACGBs run 2bp richer to 3bp cheaper across the curve, twist steepening, pivoting around 7s. YM and XM are +1.5 and -0.5, respectively, with the latter having (a so far limited) look below its overnight lows. Bills run unchanged to 3 ticks richer through the reds.

  • Consumer inflation expectations for August will cross at the top of the hour, with nothing else scheduled on Thursday when it comes to domestic data releases.

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