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AUSSIE BONDS
AUSSIE BONDS: The space has operated around the closing SYCOM closing levels in
the early part of the SFE session, with 3-Year Bond futures last trading at
97.725 (-0.5 tick), with 10-Year Bond futures at 97.175 (-3.0 ticks).
- 3-Month BBSW fixed 0.5bp lower today as repo rates eased, with the Bill strip
off of session lows, with the white and red contracts unchanged to a tick higher
on the session.
- The domestic 3-10 Year yield differential is last 3.1bp steeper at 57.0bp (as
the lower short term rate fixings underpin the 3-Year), while the AU/US 10-Year
yield spread is 0.7p wider at -10.0bp.
- The auction of the shortest 10-Year Bond future basket constituent passed
smoothly, with the line registering yet another extremely strong bid-to-cover
ratio at the auction, which is unusual for the shortest 10-Year basket bond,
pointing to persistent demand for the line.
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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