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The domestic 3-/10-Year yield..........>

AUSSIE BONDS: The domestic 3-/10-Year yield differential has flattened on the
back of the stronger than exp. domestic labour market report (with a strong
headline beat driven by full time jobs and an uptick in the participation rate
noted), last dealing at 53.3bp after touching a low of 52.4bp. Outright Bond
futures trade around a tick off of their lows after selling pressure gathered
pace on the back of the release, following earlier weakness tracking U.S.
- The Bill strip last trades 2-5 ticks lower, in sympathy with Bonds, after
3-Month BBSW fixed unchanged today. Looking at the IB strip there has been no
trades beyond IBK9 today, with that contract pricing in 5bp worth of tightening
(based on mids), or a 20% chance of a 25bp hike by the end of May next year.
- Participants' focus now turns to next week's AU CPI release.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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