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Pressure on U.S. Tsys limited any......>

AUSSIE BONDS
AUSSIE BONDS: Pressure on U.S. Tsys limited any follow through to yesterday's
rally during SYCOM trade, which saw OI in YMZ9 rise by over 62.0K & OI in XMZ9
rise by over 14.0K, pointing to fresh longs being added yesterday.
- The analyst calls re: RBA QE that drove yesterday's move higher (from Westpac
& RBC) facilitated some notable outperformance vs. U.S. Tsys in the last 24
hours, with the AU/U.S. 10-Year yield spread now at -76bp.
- Rally has resumed in early SFE trade, with a focus on Trump signing the Hong
Kong Bill. Both major bond futures contracts extend on yesterday's highs, YM
+2.5, XM +1.0, leaving YM/XM at 38.0.
- Bills sit unchanged to 2 ticks higher through the reds.
- 18bp of easing now priced in by the end of the RBA's Feb meeting, per the IB
strip.
- Q3 CapEx data headlines the local docket today.
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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