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YM Bid On RBA's YCT Enforcement

AUSSIE BONDS

YM pops higher as the RBA steps in to buy A$1.0bn of ACGB Apr-24 and defend its YCT mechanism for the first time since February, last -0.5, with XM -2.5. This comes after two-way fluctuations in early dealing as the market digested Thursday's move in U.S. Tsys (and relative outperformance in Aussie bond futures) & assessed chances of the now realised YCT defence from the RBA. ACGB Apr-24 (which does not form part of YMZ1's underlying basket) has richened by ~2.5bp on the back of the move to last trade at 0.15%, still 5bp above the RBA's YCT of 0.10%.

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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