Outright Bond futures had been.........>

AUSSIE BONDS: Outright Bond futures had been operating around the recent highs,

before the AOFM's announcement that, subject to market conditions, a new 21 May

2041 Treasury Bond is planned to be issued via syndication in the week beginning

16 July weighed on the longer end of the Aussie curve.

- The space took a fresh leg lower as modest risk on flows were noted after

China stated that it will retaliate to U.S. tariffs after the first round of

import duties went into play at midnight E.T. While this may seem contradictory

to the common thought process, the move was expected and didn't lead to any

immediate escalation in rhetoric from Chinese policymakers.

- The domestic 3-/10-Year yield differential & the AU/US 10-Year yield spread

are hovering around familiar territory, although the AU/US spread has moved away

from session lows following the aforementioned AOFM announcement.

- 3-Month BBSW fixed unchanged today, following 5 consecutive lower fixings, but

a surge in repo rates has pressured the Bill strip, with the white contracts

underperforming, last 2-3 ticks lower.