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Aussie bonds have taken a dip lower....>

AUSSIE BONDS
AUSSIE BONDS: Aussie bonds have taken a dip lower at the start of trade on
Tuesday, moving lower in line with US tsys, futures dropping around 2 ticks at
the open.
- It is set to be a very quiet session for Australia, the only economy release
during the session is ANZ Roy Morgan Weekly Consumer Confidence at 0030
London/0930 Sydney.
- It is set to be a quiet week for Australian markets with little on the docket.
Skilled vacancies are due on Wednesday, with an A$500mln 105-day bill sale on
Thursday and A$600mln 1.75% 2020 bond sale on Friday, part of the XMU7 basket.
- Yields rose in thin trade yesterday, some selling around the auction was
initially reversed before rising in to the close. Curve continued to flatten
modestly as it has done since the start of last week, 3-/10-Year spread last
63.3bp.
- Looking ahead ANZ note that "Yields were marginally lower overnight, but we
expect supply in the Australian market to see a small adjustment higher in
yields today."

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