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Aussie bonds saw a sell off in the.....>

AUSSIE BONDS
AUSSIE BONDS: Aussie bonds saw a sell off in the later part of the SFE session
yesterday after the sale of the syndicated 0.75% Nov 2027. Other than dropping
to session lows into the close it was another uneventful session for Aussie
bonds. The syndicated linker sold A$3bln with a bid/cover of 1.6x.
- Aussie bonds rose during SYCOM alongside US tsys market as the risk off mood
saw safe haven flows, spurred by the Trump government shutdown comment at the
rally yesterday. Yields are lower today after their gains yesterday, the curve
flattening in early trade, 3-/10-Year spread around 1bp narrower after widening
1.8bp yesterday. The AU/US 10-Year spread briefly rose above 50bp today,
matching the highest in 2017, but since the open in Australia has dropped to
47bp.
- Looking to the upcoming session ANZ note "US rates markets rallied overnight
over the ongoing concerns on the debt ceiling. The curve has flattened and swap
spreads have narrowed. Australia underperformed slightly in the move, but should
hold lower yields today."

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