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AUSSIE BONDS

Aussie bonds have backed away from their early highs as we have worked our way through the Sydney day, nudging lower after a mix of domestic and international data releases (below-expectations Q2 completed construction, largely in-line private sector credit, and marginal beats in Chinese PMIs), tracking a limited downtick in U.S. Tsys.

  • Cash ACGBs run flat to 2.0bp richer across the curve, with 30s leading the way higher.
  • YM is +2.5 and XM is +1.0. EFPs have narrowed a little, with the 3-/10-Year box steepening, while Bills run flat to 6 ticks richer across the reds, bull flattening
  • The latest round of ACGB Nov-32 supply was absorbed smoothly, with fairly nondescript internal metrics observed.
  • CoreLogic house prices for Aug are due ahead of tomorrow’s Sydney session, while Thursday’s data docket will be headlined by Aug final m’fing PMI, Jul housing loan data, and Aug commodity prices.

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