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Modest pressure creeping into the......>

AUSSIE BONDS
AUSSIE BONDS: Modest pressure creeping into the space as headline AU Q4 CPI tops
estimates at 0.5% Q/Q & 1.8% Y/Y vs. exp. of 0.4% & 1.7% respectively.
Underlying inflation measures hover around the RBA's assumption for Dec 2018
(+1.75% Y/Y), with weighted median at +1.7% and trimmed mean at +1.8%. 
- Front bond futures trading at fresh SFE lows as a result, with YM -2.5 ticks
and XM -0.5 tick. YM/XM runs flatter to 50.5 as a result, with the cash
equivalent at 49.3bp. AU/U.S. 10-Year yield spread trades at -48.2bp.
- Bills pressured, whites and reds trade 2-4 ticks lower, with some selling
highlighted in the front end of the IB strip post-CPI.
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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