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On Monday TD Securities recommended....>

AUSSIE BONDS
AUSSIE BONDS: On Monday TD Securities recommended entering a ACGB 11/2027 - ACGB
04/2033 steepener at 18bp, with a target of 24bp and a stop at 16bp, DV01 A$75k,
negative carry 0.6bp/3 months. TD reason that "last week we took profit on our
3s10s curve flattener. Our fitted curve model now suggests positioning for
steeper curves overall. The fitted curve model indicates the ACGB 11/27 is 2.2
s.d cheap vs deviations from the fitted curve over the past 6 months. In
contrast the ACGB 04/33 is 3.2 s.d. rich on deviations from the fitted curve
over the past 6 months. We believe positioning is light on steepeners following
the rapid flattening over the Dec/Jan period." TD highlight risks as "lower ACGB
issuance and demand for duration flattens the curve."

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