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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

Aussie Bond futures opened sharply.....>

AUSSIE BONDS
AUSSIE BONDS: Aussie Bond futures opened sharply lower owing to the weekend
developments re: U.S.-China trade matters but YMZ8 & XMZ8 struggled to hold
below Friday's lows, and have edged away from worst levels. Yields trade 1.2bp
to 3.1bp higher across the curve at writing. The domestic 3-/10-Year cash yield
spread hovers around ~59.0bp, 1.5bp steeper on the day, while the AU/U.S.
10-Year yield spread deals at -42.2bp.
- Little reaction in the space to the latest GDP partials released earlier. That
comes after soft completed construction work & CapEx data last week, although
Q2's CapEx reading was subject to upward revisions, as was the completed
construction work metric for Q2.
- The white & red Bills trade unchanged to 2 ticks lower, on fairly limited
volumes given activity elsewhere. 3-Month BBSW set 0.5bp higher today.
- Focus in the early part of the week will fall on the broader risk backdrop,
ahead of Tuesday's RBA MonPol decision & Wednesday's AU GDP release. Later in
the week participants will look to AU retail sales and trade balance data, as
well as an address from RBA's Debelle.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com