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Strong Q4 private CapEx data out of....>

AUSSIE BONDS
AUSSIE BONDS: Strong Q4 private CapEx data out of Australia (+2.0% Q/Q vs. BBG
median of +1.0%) has added some weight to the space, allowing futures to break
through the SYCOM lows. The first estimate of 2019/20 CapEx printed at A$92.1bn,
topping the BBG median of A$90.5bn (Westpac have cautioned that estimates become
more reliable from the 3rd instance).
- YM last -2.5 ticks, with XM -5.0 ticks, off of the initial reaction lows.
YM/XM trades at 46.0, with the cash equivalent at 46.2bp, modestly steeper in
the wake of the print. The AU/U.S. 10-Year yield spread trades at -55.3bp.
- Bills run 1-4 ticks lower through the reds at writing.
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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