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The space has operated in a rather.....>

AUSSIE BONDS
AUSSIE BONDS: The space has operated in a rather limited fashion, trading shy of
the SYCOM highs, after Bonds followed US Tsys higher on a reported fat finger in
T-Notes on Thursday.
- The space shrugged off the issuance of A$2.5bln worth of new May 2030 Bonds
and the latest round of AOFM buybacks following yesterday's concession ahead of
the supply, and edged higher in the latter half of the session in sync with
Tsys.
- The domestic 3-/10-Year yield differential continues to operate above 60.0bp
after the steepening seen yesterday, with the AU/US 10-Year spread now at
~13.5bp with talk of interest to fade the recent narrowing of the spread around
today's supply.
- Bills have edged higher in the main, tracking Bonds, although IRU8 has
underperformed with BBSW/Repo still pressuring.
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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