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Steepening Back With Avengeance

AUSSIE BONDS

Monday added to the downside impetus that remerged during the final overnight session of last week, after the lack of an imminent AOFM syndication gave bulls some respite during Friday's Sydney session.

  • Aussie bond futures were pressured by the broader dynamic witnessed in core FI (outlined elsewhere), as well as some local semi issuance in the form of a SAFA '34 tap (for up to A$1.0bn, set to price tomorrow), and reports from BBG which pointed to China allowing some stranded Australian coal cargoes onshore (although the broader import ban is set to remain in place). This left YM unchanged, with XM -7.5 at the bell, as the latter extended on its recent move lower.
  • Other sources of long-standing Sino-Aussie tension saw more negative news flow, although didn't see much in the way of market reaction, given their speculative and/or long dated nature.
  • A quick look to tomorrow's local docket sees the release of the latest NAB business confidence survey, while Wednesday will bring the monthly Westpac consumer confidence print.
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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