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Aussie bond futures edged away from....>

AUSSIE BONDS
AUSSIE BONDS: Aussie bond futures edged away from the SYCOM lows on the
aforementioned Chinese PMI data and disappointing earnings from some of the
major global tech players. The space also managed to draw support from month-end
flows, with Morgan Stanley alluding to larger than usual month-end extensions
for the space. Local credit data had no impact on the space. 
- YM last +0.5 tick, with XM -1.0 tick. YM/XM trades at 54.5 ticks, with the
cash equivalent at 50.0bp. Bills trade unchanged through the reds.
- Sizeable RBA repo ops were noted today, with month-end & tax flows touted as
the driver. A total of A$4.32bn was allotted across the 14-, 36-, 76- & 174-Day
tenors, at average rates of 1.709%, 1.696%, 1.662% & 1.599% respectively, with
the allocation skewed to the longer tenors.
- Elsewhere, there was some attention given to the latest uptick in bank
deposits (via the APRA data), which corresponds with the move lower in funding
rates during Q1 (plentiful cash pay-outs via stock dividends & bond redemptions
were highlighted previously).
- Focus turns to NZ labour mkt data across the Tasman & ACGB 2030 supply.
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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