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AU bonds have followed the broader.....>

AUSSIE BONDS
AUSSIE BONDS: AU bonds have followed the broader theme, with tomorrow's RBA
decision in view. YM last -0.5 tick, with XM -1.0 tick. YM/XM back to unchanged
at 41.0 after steepening a touch early in the day. The latest round of Chinese
manufacturing PMI data from Caixin provided some support overnight, as it missed
expectations, and it is also worth remembering that the Australian AiG m'fing
PMI moved into contractionary territory. Elsewhere, the CoreLogic house price
index revealed the first monthly upticks for Sydney & Melbourne prices for some
time, although the headline capital city index still slid.
- Bills are trading 1 tick higher to 1 tick lower through the reds. RBA repo ops
saw A$650mn of 8-day ops dealt at an average of 1.324%, A$1.1bn worth of 30-day
ops dealt at an average of 1.252% and A$1.04bn worth of 58-day ops dealt at an
average of 1.243%.
- Looking ahead OIS price a near 80% chance of a cut tomorrow, with IB's pricing
a ~75% chance of such a move. Our preview of the decision will follow later
today. It is also worth remembering that RBA Governor Lowe will make an address
5 hours after the decision.
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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