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Aussie Bonds had a limited reaction....>

AUSSIE BONDS
AUSSIE BONDS: Aussie Bonds had a limited reaction to softer than expected
Australian core CPI readings and marginal negative revisions to Q2 core CPI
metrics.
- It is worth noting that the RBA has previously warned of "one-off declines in
some administered prices in the September quarter."
- 3-Year Bond futures trade off of session lows, while the modest bid that crept
into 10-Year futures after the release has faded, allowing the contract to
register fresh lows late in the day.
- The AU/U.S. 10-Year yield spread is holding around -52bp, while the domestic
3-/10-Year cash yield differential last deals at 62.5bp, ~2.5bp steeper on the
day as the long end underperforms.
- The Bill strip is little changed from pre-release levels, 1 tick higher to 1
tick lower on the day in the whites and reds. 3-Month BBSW fixed 0.5bp lower
today.
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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