Trial now
USDCAD TECHS

Tests Major Support - The 2017 Low!

SILVER TECHS

Bulls Still In Charge

GOLD TECHS

Fades Through Thursday

EUROSTOXX50 TECHS

(M1) Bounces Off Lows

BRENT TECHS

(N1) Falls Back Into Range

AUDUSD TECHS

Fresh Weekly Lows

On Thursday TD Securities noted that...>

AUSSIE BONDS
AUSSIE BONDS: On Thursday TD Securities noted that "10-Year ACGBs traded briefly
below 2.50% last month, but the move was reversed just as quickly. Following
this month's sell off, we expect AU bonds to stage a near term rally. Our
conviction levels on the magnitude of a rally are not high so we are loathe to
chase the move. Should 10-Year ACGBs rally towards 2.50%, our bias would be to
fade the move. The Australian 10-Year term premium is skating near record lows
and our conviction that -1% could represent the secular low supports 10-Year
ACGB yields basing around 2.50%. Historically lows in term premium near -1% have
coincided with lows in nominal bond yields. A catalyst for even a mild reversal
of Australian term premium from deeply negative territory is the removal of
liquidity and monetary policy accommodation that is likely to gather pace from
next quarter. With 2.50% defining the likely low in bond yields, the yield
topside appears to be capped at 3% on fundamentals and technicals. Should term
premium be unwound it would support a steeper ACGB curve. Our 3s10s curve model
is currently at fair but technicals suggest scope for another 10bps of
steepening."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com