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The aforementioned broader based.......>

AUSSIE BONDS
AUSSIE BONDS: The aforementioned broader based risk flows pertaining to trade
war matters and the latest Italian political developments have put a bid into
the space, after futures based ahead of the latest 30-Year Tsy auction out of
the U.S. overnight.
- YM +2.5 with XM +4.5 vs. their respective settlement levels. Curve flattening
remains the theme, with YM/XM at 29.5 ticks.
- The AU/U.S. 10-Year yield spread deals at ~-78bp after trading in a 25bp range
this week.
- Bills deal 1-2 ticks higher through the reds.
- Today's docket is headlined by the release of the RBA's latest SoMP as well as
RBA Governor Lowe's semi-annual testimony to a parliamentary committee, with the
latter set to get underway at the bottom of the hour. The IB strip prices a
circa 60% chance of a rate cut at the RBA's September meeting at present.
- The AOFM's weekly issuance schedule will also garner the usual attention.
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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