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Aussie Bonds have softened after the...>

AUSSIE BONDS
AUSSIE BONDS: Aussie Bonds have softened after the AOFM launched its new 1.00%
21 February 2050 Treasury Indexed Bond. The initial issue will be of a benchmark
size. Initial price guidance for the issue is a spread of 9-13bp over the
mid-yield of the 21 Aug 2040 Indexed Bond. This has seemingly outweighed the
latest round of combative U.S.-China trade remarks from the weekend.
- Focus also remains on corporate issuance. NAB has announced a new benchmark
5-Year deal. As a reminder AT&T's A$1.325bn multi-tranche deal priced late
Friday: A$150mn 5-Year FRN at 3mBBSW +125bp, A$475mn 5-Year Fixed at SQ ASW
+125bp, A$300mn Long 7-Year (Jan. 26) Fixed at SQ ASW +170bp, A$400mn 10-Year
Fixed at SQ ASW +200bp.
- The domestic 3-/10-Year yield differential trades a touch steeper at ~59.0bp.
- The Bill strip trades unchanged to 2 ticks softer, with 3-Month BBSW fixing
0.75bp higher today.
- Tomorrow's RBA meeting minutes and Wednesday's address from RBA's Kent
headline the AU docket this week.
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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