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The space continues to operate.........>

AUSSIE BONDS
AUSSIE BONDS: The space continues to operate around Friday's closing-slightly
lower levels, although a solid auction of a 10-Year Bond basket constituent has
helped to underpin the space.
- The domestic 3-/10-Year yield differential last trades 1.4bp steeper at
58.4bp, while the AU/US 10-Year yield spread sits 0.6bp wider at -10.6bp.
- The auction result isn't all that surprising given the recent run of strong
results in the auctions of the shortest Bond in the 10-Year futures basket,
which has now spread into the longest line eligible for delivery.
- 3-Month BBSW fixed unchanged today which has supported the front Bill
contract, leaving it unchanged, while the remainder of the white & red contracts
trade 2-3 ticks lower.
- Focus falls on tomorrow's domestic CPI release & address from RBA's Kent.
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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