Aussie bond futures have started the...>

AUSSIE BONDS: Aussie bond futures have started the week on a negative note with

the 10-year shedding 5.5bps to trade at 97.2150 as the Sep 26 lows at 97.20 come

under threat. 3-year futures trade 3.5bps lower on the day at 97.875, hitting

fresh monthly lows.

- 10-year cash yields have jumped 4.9bps today to trade at 2.764%, with the

2s-10s curve continue its steepening trend. The spread currently sits at a

7-month high at 71.90bps. 

- The AU-US spread has risen from last week's lows and sits at -46.88bps. The

real yield spread  is at -23.75%, testing 2015 levels, even as Aussie inflation

expectations continue to underperform. 

- The AOFM sold AUD500mn in 2.75% 21 Nov 2028 bonds today which received 4.94

times the amount of debt offered compared with the last 5 auction average of

4.3.