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

AUSSIE BONDS
AUSSIE BONDS: The space continues to operate at/near fresh session highs, after
NAB hiked its variable mortgage rates by 12-16bp, citing an increase in funding
costs, with the leg higher in futures coming on the back of the RBA's perceived
reaction function owing to the wealth effect.
- A fairly solid domestic labour market print applied some pressure to the space
earlier in the session.
- YM last +1.5 tick, XM +0.5 tick, while YM/XM trades at 52.0. The cash
3-/10-Year yield differential trades at 49.9bp, with the AU/U.S. 10-Year yield
spread last -47.3bp.
- Bills unchanged to 2 ticks higher across the whites and reds, with the strip
modestly flatter at writing.
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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