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AUSSIE BONDS
AUSSIE BONDS: Australian has followed the beat of the bigger drum on Monday, as
offshore developments (namely China) drove onshore markets. YM & XM finished
+3.5 & +3.0 respectively, away from best levels. Aussie 10s have underperformed
their U.S. counterpart with the spread between the two widening to -60.0bp since
Friday's settlement.
- Better than exp. building approvals, and a recovery in ANZ job adverts were
seen. Elsewhere, there was a soft domestic AiG m'fing PMI (45.4 vs. 48.3 prior)
& an uptick in the final CBA m'fing PMI vs. flash (49.6 vs. flash 49.1) in early
Sydney hours.
- On the semi-issuance front, SAFA announced that they will issue up to A$1bn
worth of a new May 2032 line via placement in February. Also, Korea resources
mandated for a possible A$ deal.
- Bills shut 2-5 ticks higher through the reds.
- Tomorrow's RBA MonPol decision headlines the local docket. IBs pricing a circa
25% chance of a cut at the close of business today (expect our full preview to
be released in London hours).
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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