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The complex has struggled to turn......>

AUSSIE BONDS
AUSSIE BONDS: The complex has struggled to turn bid, with Bonds operating around
the session lows that were registered at the SFE open.
- Monday's SYCOM session saw the space follow U.S. Tsys lower, although Aussie
Bonds have continued to outperform Tsys, for reasons we have highlighted before,
with the AU/U.S. 10-Year spread some 2bp wider at ~-25bp in early dealing,
before retracing to -23.5bp last.
- The domestic 3-/10-Year yield differential has continued to steepen from the
recent low, last 2.1bp higher at ~56.5bp.
- 10-Year futures closed bellow the bull channel base off of the May lows on
Monday, with the contract now sandwiched between the key MA's.
- Repo rates have continued to ease, with today's 16 day operation yielding
1.892%, still some ~39bp over the cash rate.
- The Bill strip is mixed with the front 2 contracts 1 to 2 ticks higher, while
the remainder of the strip trades unchanged to 3 ticks lower.
- Participants await the AU CPI release, due tomorrow.
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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