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Bond futures have ticked away from.....>

AUSSIE BONDS
AUSSIE BONDS: Bond futures have ticked away from SYCOM/early SFE lows, with
T-Notes also edging away from worst levels. Soft Westpac consumer conf. data has
also underpinned. The domestic 3-/10-Year yield differential hovers around
~57.5bp, while the AU/U.S. 10-Year yield spread has moved to ~-39.0bp, with the
longer running theme of outperformance in AU paper vs. Tsys holding true.
- Focus remains on corporate issuance, with swappable paper adding another
degree of support to the space. Press reports suggest that AT&T's touted
Kangaroo Bond could be sized up to A$2bn, elsewhere GPT Re. launched A$100bn
worth of 6-Year paper and SocGen mandated banks for 5-Year A$ paper. On the
semi/muni front the SAFA taps book-build split is roughly A$700m for the Sep '22
line and A$770mn for the July '26 line, with guidance for Sep '22 set at 41bp
EFP (37.75bp vs. ACGB Jul '22), and at 37bp EFP (49.75bp vs. the ACGB Apr '26)
for July '26.
- Bills trade a tick lower to a tick higher, 3-Month BBSW fixed ~+0.3bp today.
- The AOFM's auction of A$1.0bn worth of the May '28 Bond was easily digested,
with the offer to cover ratio ticking higher on a size adj. basis.
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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