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3-Year futures last trade at 97.905....>

AUSSIE BONDS
AUSSIE BONDS: 3-Year futures last trade at 97.905 (+1.5 ticks) 10-Year futures
last 97.240 (+3.5 ticks). The cash equivalents' yields last sit at 2.072
(-1.3bp) & 2.774% (-3.4bp) respectively. 
- The SYCOM session allowed the space to recover underpinned by Brexit related
worry & US Tsy month-end flows.
- Decent enough 2 way flow was seen in the 3-Year futures in early dealing with
the soft CapEx release briefly pushing the space to fresh highs, before the
positive revision to the prior led to the move being unwound. Firms' FY17-18
plans were slightly ahead of exp., while the first look at FY18-19 est. lagged
market consensus marginally.
- The domestic 3-/10-Year differential now sits < 70bp, last 2bp softer at
69.4bp.
- The Au/US 10-Year spread continues to operate around the -10bp level. 
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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