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Another fairly uneventful session......>

AUSSIE BONDS
AUSSIE BONDS: Another fairly uneventful session for Aussie bonds, futures head
into the close around 2.5 ticks lower, with both the 3-Year and 10-Year contract
seeing a two tick range during SFE trade. Aussie bonds sold off on SYCOM moving
alongside U.S. Tsy's, amid broad risk on sentiment following no developments in
N. Korea and less destruction from Hurricane Irma than was expected.
- The AOFM sold A$900mln of 2.75% 2028 bonds, the auction was strong, covered
4.0267 (prev. 2.9875) at an average yield of 2.7414%.
- Westpac Consumer Confidence Index figures during the session were up 2.5% for
Sept. (Prev. -1.2%), the odds of a hike in the next RBA meeting are slim but
towards Spring 2018 they increase to above 50%, previously it was predicted
there would more likely be a cut than a hike.
- Dovish comments from RBA's Harper gave Aussie bonds a slight bid to bring
futures off session lows, but was not enough to push them out of session ranges.
Harper said that growth was too weak at the moment to warrant a rate hike.
Yields up across the curve but off session highs heading in to the close,
3-/10-Year spread some 0.4bp flatter.

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