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AU/U.S. 10-Year Spread Tightens

AUSSIE BONDS

Futures firmed overnight, with a fresh bid creeping in during early Sydney trade, leaving YM +1.2 and XM +3.8 at typing. Participants looked to U.S. Tsy market dynamics, which centred on U.S. CPI data and the latest round of 10-Year Tsy supply. There has also been a degree of idiosyncratic support in play for the space over the last 24 hours or so, with the Aussie/U.S. 10-Year yield spread tightening by ~6.0bp over that timeframe, aided by RBA Governor Lowe's rhetoric.

  • The local docket is now relatively muted into the end of the week, with the AOFM's weekly supply schedule set to provide the next domestic point of note (due to be published on Friday).
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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