Trial now
LATAM

Updated Central Bank Schedule

US TSY OPTIONS

Late 10Y Put Spd

USDJPY TECHS

Fierce Bounce, But Needs to Stick

EURGBP TECHS

At Risk of Bearish Breakout

GBPUSD TECHS

Key Resistance Exposed

Aussie Bonds ticked higher,............>

AUSSIE BONDS
AUSSIE BONDS: Aussie Bonds ticked higher, supported by heavy buying activity in
YMZ8, drawing additional support from month-end extension flows, as yields
softened by 1.0-2.0bp across the curve.
- The domestic 3-/10-Year domestic yield differential last trades unch. at
~61.0bp, with the AU/U.S. 10-Year yield spread at ~-38.0bp last, as U.S. Tsys
underperform local Bonds.
- The AOFM's issuance schedule for next week is quite light, with 2 Bond
auctions of A$500mn a piece, covering 1 YMZ8 basket constituent & 1 XMZ8 basket
constituent.
- The uptick in Bonds, along with 3-Month BBSW fixing 0.8bp lower and an uptick
in bank deposits in August (for a second consecutive month according to the
APRA) has supported the Bill strip, which trades 1 to 2 ticks higher last, as
funding pressures eased a touch at quarter end.
- Participants now look to next week's RBA MonPol decision, AU trade data &
retail sales. It is also worth noting that RBA's Heath will make an appearance
next week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com