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Aussie Bond futures have ticked away...>

AUSSIE BONDS: Aussie Bond futures have ticked away from Friday's SYCOM lows,
allowing for some outperformance vs. U.S. Tsys, with the AU/U.S. 10-Year yield
spread sitting at ~-33.5bp.
- Potential political unrest re: the future of PM Malcolm Turnbull may be
underpinning the space in early dealing, although he has stressed that he has
the confidence of the cabinet & his party room.
- The domestic 3-/10-Year yield differential has flattened a touch, to last deal
at 52.3bp, continuing the theme from last week.
- On the corporate issuance front, Commerzbank has announced an inaugural A$ T2
10-Year subordinated transaction, while VW Financial has mandated banks for a
3.5 Year A$ denominated deal.
- The Bill strip last trades a unch. to 2 ticks higher following Bonds, while
3-Month BBSW fixed 0.5bp higher at 1.955% today.
- Traders will look to the release of the RBA's Aug meeting mins, due Tuesday,
with plenty of additional RBA-speak dotted throughout the week (Gov. Lowe, Asst.
Gov. Debelle & Boulton). Econ releases include AU Q2 completed construction.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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