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The broader risk-off theme continued...>

AUSSIE BONDS
AUSSIE BONDS: The broader risk-off theme continued to develop in overnight
trade, supporting futures during the SYCOM session. Contracts sit just off best
levels in early Sydney hours, with 3s perhaps struggling a little for further
momentum given the proximity to all time lows in yield terms. Deeper RBA
re-pricing may be required in order to see further traction there. Meanwhile 10s
sit ~4.0bp off their all-time low in yield terms.
- YM +2.0, XM +3.0 last.
- Aussie 10s have underperformed their U.S. counterpart in the latest leg of the
rally, with that particular spread widening back above -50bp.
- Bills sit 1-2 ticks higher through the reds.
- ACGB I/L supply headlines today's local docket, so we should expect broader
flow/headline matters surrounding coronavirus to dominate.
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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