Trial now

Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

AUSSIE BONDS: Aussie Bonds edged lower during the SYCOM session, and trade
at/around worst levels last. The overnight session saw the space continue to
outperform its U.S. Tsy counterpart as the AU/US 10-Year spread & domestic
3-/0-Year yield differential continue to operate in familiar territory.
- 3-Month BBSW fixed 0.7bp higher this morning, with some modest selling
pressure noted in the front end of the Bill strip. Near term volatility in the
repo rate space also continues to garner attention.
- Today's AU NAB business survey provides the main domestic point of interest
this week. The prior confidence metric stood at 6, with the prior conditions
reading standing at 15. ANZ think "Australian business conditions should post a
solid improvement in June. The decline in May was somewhat disappointing, but
strength in other business surveys suggests that sentiment remains elevated. The
details of the report, including capacity utilisation and business profits,
continue to be a point of interest, given their current positive signals for the
labour market." The broader Aussie Bond space is unlikely to pay much attention
to the A$150mn auction of the August 2040 I/L Bond due later today.
MNI London Bureau | +44 0203-865-3809 |