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Aussie Bonds softened after the AOFM...>

AUSSIE BONDS
AUSSIE BONDS: Aussie Bonds softened after the AOFM launched its new 1.00% 21
February 2050 Treasury Indexed Bond. The initial issue will be of a benchmark
size (with estimates ranging from A$1.25-A$3.00bn based on the range we have
seen). Initial price guidance for the issue is a spread of 9-13bp over the
mid-yield of the 21 Aug 2040 Indexed Bond. This seemingly outweighed the latest
round of combative U.S.-China trade remarks from the weekend, with talk of
demand for U.S. Tsys against their AU counterparts also weighing.
- Focus also remains on corporate issuance. NAB has announced a new benchmark
5-Year after AT&T's A$1.325bn multi-tranche deal priced late Friday.
- The Bill strip trades unchanged to 1 tick softer last, 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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