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Bond futures have leaked lower over....>

AUSSIE BONDS
AUSSIE BONDS: Bond futures have leaked lower over the last hour or so. Demand at
the latest 2037 bond auction was stronger than the previous auction for the
line, this may point to drive for duration, weighing on shorter dated futures,
although issuance size was limited at ~A$400mn (in line with previous last
auction).
- That being said the move back from early highs may just be a sign of
exhaustion, with T-Notes also pulling back from best levels.
- YM last -0.5 tick, XM +1.0 tick. YM/XM trades at 49.0, with the cash
equivalent at 47.6bp. The AU/U.S. 10-Year yield spread trades at -41.4bp.
- Bills trade virtually unchanged on the day through the reds.
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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