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Weaker, But Off Overnight Lows

AUSSIE BONDS

Aussie bond futures underperformed vs. U.S. Tsys overnight, leaving YM -1.0 and XM -3.5 at typing, although the latter sits comfortably off of its overnight trough/recent low, aided by the broader impetus in the wake of Fed Chair Powell's latest round of rhetoric.

  • AUD 1-Year/1-Year swaps are little changed on the day, operating ~8bp shy of this week's highs.
  • Q4 completed construction work and wage price data headline the local docket on Wednesday, while the latest RBNZ monetary policy decision has the potential to create some trans-Tasman spillover.
  • Elsewhere, the RBA is scheduled to conduct its latest round of semi-government bond purchases, and may very well choose to step in to enforce its 3-Year ACGB yield target at the same time (see earlier bullet for the thoughts of AFR RBA whisperer John Kehoe on the matter).
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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