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YM Bid At Re-Open

AUSSIE BONDS

The curve bull steepens a little at the re-open, with YM supported by the overnight bid in the front end of the U.S. Tsy space, while XM lags owing to the twist steepening dynamic observed in the U.S. That leaves YM +4.0 & XM +0.5, with the former through its overnight high, while the latter is flat at the re-open.

  • Post-Sydney close comments from the RBA failed to unearth much in the way of meaningful, fresh information. Deputy Governor Bullock noted that she expects some “upward revision” when it comes to the Bank’s forecast profile, with underlying inflationary pressure now in the economy and talk “on the ground” of rising upward wage pressure. She also noted that A$ appreciation is helping contain price pressures. Meanwhile, Assistant Governor Kent pointed to budget spending being a factor in the Bank’s monetary policy decisions, while he identified a reasonably broad-based inflationary dynamic.
  • Monthly trade balance data headlines the domestic docket on Thursday.
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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