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Bond futures moved higher on SYCOM,....>

AUSSIE BONDS
AUSSIE BONDS: Bond futures moved higher on SYCOM, as risk off flows supported,
they then ticked away from their opening highs through SFE dealing, before
moving back to best levels into the close. - YMZ8 failed above 97.95 again, but
is looking to retest. The contract has lacked follow through after a brief look
above, with recent highs/Fibonacci resistance in play in the region. 3-Year cash
yields have dipped below 2.0%.
- The long end has outperformed on the latest rally, leaving the domestic
3-/10-Year cash yield spread at 60.8bp last, with the AU/U.S. 10-Year yield
spread hovering around -50bp.
- Swaps lagged ACGB's, allowing spreads to widen.
- The Bill strip last deals 1 tick softer to 6 ticks higher, with the front end
underperforming despite 3-Month BBSW fixing ~0.3bp lower today.
- Fitch affirmed Australia's AAA credit rating; outlook stable, while Australia
reported an underlying cash deficit of A$10.5bn in the year to the end of Sep. -
Focus turns to next week's AU CPI release & AOFM issuance schedule (due
tomorrow).
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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