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YM Longs Were Rebuilt On Monday

AUSSIE BONDS

Open interest data suggests that longs in YM were rebuilt on Monday, with the uptick in prices aligning with a ~37K rise in open interest. This comes after some short setting and long liquidation was observed in the wake of last week's firmer than expected CPI reading.

  • The fresh longs don't appear to be fazed ahead of today's considerable event risk, which comes in the form of an expected removal of the RBA's yield targeting mechanism and subsequent guidance tweak re: the cash rate. Perhaps the extent of the recent move has emboldened their view i.e. YM has sold off too far, too quickly. Note that the contract currently sits 26.0 off of its recent low!
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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