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Weakness Extends Further

AUSSIE BONDS

Spill over from continued payside swap flow pressure (evidenced via EFPs) and some delayed reaction to the firmer than expected labour market report has allowed ACGBs to leak lower in the time since our previous update, perhaps applying some additional pressure to U.S. Tsys in the process. This comes after some early trans-Tasman pressure in lieu of firmer than expected NZ GDP data. YM & XM have nudged away from their respective session cheaps in recent dealing, to sit -6.8 & -9.4 respectively, while wider cash ACGBs print 7-10bp cheaper.

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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