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*Correct* (clipboard error) Aussie.....>

AUSSIE BONDS
AUSSIE BONDS: *Correct* (clipboard error) Aussie Bond futures had edged away
from the early session lows, before fading into the close, potentially aided by
some positive comments from Chinese President Xi re: trade, with the contracts
closing near worst levels.
- A 6.0K seller in 3-Year futures dictated early price action.
- The latest 30-Year auction's bid to cover ratio held up fairly well, given the
increasing size vs. the most recent tender of the line, although the tail
widened a touch. The tender had no effect on broader Bond futures.
- The domestic 3-/10-Year cash yield differential closed at at ~65.7bp, as the
long end underperformed in the latest sell off, driven by Friday's report re:
Trump asking his cabinet to draft a potential China trade deal & a strong U.S.
labour market report. The AU/U.S. 10-Year yield spread deals at ~-47.0bp.
- Bills traded lower, settling 1 to 5 ticks worse off, with 3-Month BBSW setting
~0.4bp higher today.
- The main AU events this week come in the form of the latest RBA MonPol
decision & SOMP.
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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