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The space has eased from the Italy.....>

AUSSIE BONDS
AUSSIE BONDS: The space has eased from the Italy inspired highs, following US
Tsys lower in what has been active session, albeit it on limited to no news
flow.
- Today's focus is on the broader risk sentiment as opposed to the domestic
environment.
- 3-Year Bond futures last trade at 97.875 (+2.5 ticks), while 10-Year Bond
futures trade at 97.355 (+4.5 ticks). The domestic 3-/10-Year yield differential
trades some 2.7bp tighter at 53.6bp, while the AU/US 10-Year spread trades 2.2bp
tighter at -18.0bp.
- The front end of the Bill strip is softer after BBSW fixed 3.25bp higher as
Italy begins to factor into global credit. IRM8 & IRU8 last trade 3 ticks lower
on the day. The remainder of the white contracts trade 1-2 ticks lower, while
the reds are 1 to 2 ticks higher.
- Domestic focus remains on tomorrow's Capex data.
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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