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The space digested a solid 3-Year......>

AUSSIE BONDS: The space digested a solid 3-Year futures basket constituent
auction, with 3-Year futures last a tick back from the early highs at 97.89 (+2
ticks on the day) & 10-Year futures exhibiting similar price action, last at
97.155 (+ 2 ticks). The cash equivalents are yielding 2.081% (-2.0bp) & 2.857%
(-1.6bp) respectively.
- From a technical perspective the 3-Year future's 97.790 support level
reconfirmed significance with yet another dip back towards this level running
into support and the resulting bounce seeing immediate pressure back on
97.890-905 where the 100-DMA is noted.
- The domestic 3-/10-Year curve, sits at 77.0bp last, 1.1bp steeper on the day,
while the AU/US 10-Year spread, remains in negative territory at a discount of
- ANZ highlight one potential catalyst that could drive the spread moving
forwards, in that "the AOFM has completed nearly 75% of its gross requirement",
and suggest that "this should remove pressure on the longer end."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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