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Aussie Bonds have been dragged.........>

AUSSIE BONDS
AUSSIE BONDS: Aussie Bonds have been dragged higher by a combination of
political unrest (as several ministers informed PM Turnbull that he no longer
has the confidence of his party and tendered their resignation), RBC pushing
back its RBA rate hike call & Huawei/ZTE being banned from providing 5G in
Australia. The 10-Year futures contract (XMU8) registered a fresh contract high
on the move.
- There was some modest A$ issuance, which was ignored.
- The domestic cash 3-/10-Year yield differential last deals around 52.0bp, with
the AU/U.S. 10-Year yield differential last at ~-29.5bp.
- The Bill strip was dragged higher on the move in Bonds, and last trades 1 to 2
ticks better off, while 3-Month BBSW fixed some 0.22bp higher today.
- The AU docket is thin over the next week, with focus on Q2 CapEx due next
Thursday. This will leave the space subject to the goings on at the Jackson Hole
Symposium & AU politics.
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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