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AUSSIE BONDS

U.S. Tsys Drag The Futures Curve Steeper Overnight

NZD

Kiwi Swings To Weekly Gain

US TSYS

Steeper & Cheaper

AUSSIE 10-YEAR TECHS

(Z1) Bearish Price Sequence

AUSSIE 3-YEAR TECHS

(Z1) Off Recent Highs

ASIA

Coming up in the Asia-Pac session on Friday:

AUSSIE BONDS
AUSSIE BONDS: A subdued session for futures, with a stronger than exp. domestic
retail sales print noted. YM & XM trade around unch. levels, with YM/XM last
51.50 as the cash 3-/10-Year yield differential deals at 48.0bp. AU/U.S. 10-Year
yield spread last -41.6bp. Dovish comments from Fed Vice-Chair Clarida & threats
from U.S. President Trump re: the use of emergency powers to fund a border wall
underpin, outweighing optimism surrounding a top tier U.S.-China trade summit. 
- Lack of any fresh long end issuance in the AOFM's latest weekly issuance
schedule noted after the MYEFO saw the AOFM note that "at the time of the
2018-19 Budget, the AOFM planned to establish new bond lines maturing in
September 2023 and December 2030. These lines are no longer planned to be
issued. A syndication of an existing ultra-long bond line may still be
considered."
- Bills last trade unchanged to 1 tick lower in the whites and reds. RBA Reverse
repo ops saw A$780mn worth of 12-Day ops dealt at 2.029% & A$1.355bn worth of
34-Day ops dealt at 2.009%, rates consolidating above 2.0%.
- Inflation expectations & consumer confidence headline next week's AU docket.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com