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The space has started the week in a....>

AUSSIE BONDS
AUSSIE BONDS: The space has started the week in a tight range. 3-Year bond
futures last trade at 97.875 (-1.0 tick), while 10-Year Bond futures last trade
at 97.275 (-1.5 ticks).
- The domestic 3-/10-Year yield differential last trades 0.8bp steeper at
67.0bp.
- The AU/US 10-Year spread trades around 2.1bp wider at 14.9bp.
- The latest auction of a 10-Year basket bond was well absorbed, with demand
supported by the fact that the line is being viewed as the "de-facto" benchmark
bond. This helped the auction to pass smoothly, despite the increase in size
when compared to the line's most recent issuance (although the cover ratio did
creep lower). The AOFM's buyback operations were also well digested by markets.
- 3-Month BBSW fixed 0.5bp higher today. The Australian Bill strip is trading
1-3 ticks softer across the white & red contracts.
- Domestic risk events for the space during this week include the latest labour
market report, the minutes from the latest RBA meeting & comments from the RBA's
Bullock.
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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