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The space continues to trade around....>

AUSSIE BONDS
AUSSIE BONDS: The space continues to trade around familiar themes, tracking
broader risk sentiment/US Tsys, with the domestic 3-/10-Year yield differential
hovering around 55bp & continued outperformance vs. US Tsys anchoring the AU/US
10-Year yield spread well into negative territory.
- The Reserve Bank of Australia is well and truly on hold, and the RBA hasn't
had to use forward guidance, Governor Philip Lowe said Wednesday, in a comment
that confirms an insight published by MNI earlier that the RBA's next rate move
message was never intended to be a form of forward guidance.
- 3-Month BBSW fixed another 2.6bp or so higher today, although the white Bill
contracts have outperformed thus far.
- 10-Year Bond futures 100-WMA (97.390) remains the key upside hurdle, while the
June 19 low (97.290) & hourly support from June 14 (97.2545) provide the initial
areas of downside interest.
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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