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The space lost ground on SYCOM, as.....>

AUSSIE BONDS
AUSSIE BONDS: The space lost ground on SYCOM, as global fixed income markets
gave back most of the Cohn-inspired gains, and printed fresh lows at the start
of the SFE session. Bonds now sit just off of worst levels with the 3-Year
future trading at 97.890 (-1.0 tick) and 10-Year futures at 97.195 (-2.5 ticks).
- The domestic 3-/10-Year yield differential last sits at 73.1bp, while the
AU/US 10-Year spread is broadly unchanged at -5.8p.
- The white-red bill contracts are unchanged - 2 ticks lower.
- BBSW fixed 1.5bps higher today.
- Looking at the 10-Year futures from a technical perspective, topside
hesitation around the 100-DMA (97.2846) and ahead of the 200-DMA have taken
their toll with immediate pressure back on the 21-DMA (97.1707). Bears still
need a close below the 21-DMA to shift focus back to 97.0167-0450 where 2018
lows and the LT bull channel base off 2008 lows are noted. Initial resistance
remains at 97.2450 with bulls needing a close above to return pressure to the
200-DMA.
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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