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Aussie Bonds edged away from SYCOM.....>

AUSSIE BONDS
AUSSIE BONDS: Aussie Bonds edged away from SYCOM closing levels in the later
part of the SFE session on broader risk aversion, although their recent run of
underperformance vs. U.S. Tsys continues. This leaves the AU/U.S. 10-Year spread
at -25.5bp last, while the domestic 3-/10-Year yield differential has crossed
back above 60bp on the latest run of AU long end underperformance.
- 10-Year futures printed below the range observed in July, but lacked follow
through.
- 3-Month BBSW fixed 0.4bp higher today, with the Bill strip 1-3 ticks worse
off.
- Corporate issuance of note includes a potential covered A$ bond from ING &
3-Year paper from Mercedes-Benz.
- Tomorrow's AU retail sales release provides the highlight ahead of next week's
RBA MonPol decision & SOMP.
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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