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Aussie bonds head into the close.......>

AUSSIE BONDS
AUSSIE BONDS: Aussie bonds head into the close lower, initially dropping on
SYCOM alongside US tsys amid general risk on sentiment, the move lower was
accelerated after strong Aussie labour market data. The Australian economy added
54.2k jobs in August against an expected gain of 20k with upward revisions to
the July data, the majority of the gains came from full time jobs (contrary to
last month), while the participation rate rose 0.2ppts to 65.3%.
- This saw a 4.5 tick drop to session lows in 3-Year futures, while the long end
was slightly less affected. Yields rose across the curve with the initial knee
jerk seeing a 2.5bp move to the upside making the total move 6.3bp higher in the
3-Year. Some of this was given back on profit taking after the data, while weak
Chinese data (retail sales, industrial production and fixed asset investment)
also saw bonds catch some upside as the ASX dropped further into negative
territory, the recovery was focused on the short end with a 2.5 tick jump in 3's
and a 1 tick jump in 10's.
- 3-Year futures head into the close down 4.5 ticks at 97.925, yield up 4.7bp at
2.086%, 10-Year future last down 5.5 ticks at 97.275, yield up 5.6bp at 2.726%.

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