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(Z1) Off Lows, But Remains Weak


Still Vulnerable


Bullish Price Sequence

AUSSIE BONDS: Both the 3-Year and 10-Year benchmark contracts are up on SFE, the
3-Year last at 97.950 and the 10-Year last at 97.2550. The two contracts took a
bid after the auction results came in very well covered at 6.5x from 3.3929x on
the prior auction of the same maturity (Apr 2029.) Around 0130BST sources
reported a large clip size being traded on the IB strip, Dec 16's lifted 1.6k
- Aussie bonds ended SYCOM higher with Tsy's as U.S. GDP data surprised the
markets, higher than expected at +3% when +2.6% was predicted.
- No domestic data out Today and relatively quiet for the week apart from Friday
when retail sales come in, RBC said... "Retail sales have been soft recently
except for the cyclone-assisted patch of strength in April/May, with August
monthly data coming in a shockingly weak -0.6%. We see a limited monthly bounce
in September turnover to 0.2% growth on the back of some positive lead
indications from consumer sentiment, which picked up in September and October
readings despite higher utility and fuel prices."
- Yield are down across the strip the 3-/10-Year spread last at 3bp.