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ACGBs Hold Tight Range, Australia Works To Resolve Trade Issues With China

AUSSIE BONDS

Little movement across ACGB space as regional news flow has been particularly subdued. PM Morrison said that his "best people" are working on resolving a spat with China, which ended up leaving over 50 ships carrying Australian coal stranded off Chinese ports. On the data front, the pace of decline in Australian private capex eased in Q3, with headline figure printing at -3.0% Q/Q vs. the (negatively revised) prior reading of -6.4%.

  • YM trades +0.5 & XM +1.5 at typing. Cash space sees some light bull flattening, with yields last seen unch. to -2.1bp. Bills trade unch. to -1 tick through the reds.
  • The RBA offered to buy A$2.0bn worth of ACGB with maturities of Nov '28 - Nov '31 under its QE programme targeting the 5-10 Year sector.

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