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The space moved back to the SYCOM......>

AUSSIE BONDS
AUSSIE BONDS: The space moved back to the SYCOM highs on the back of risk off
flows stemming from a softer Yuan fixing from the PBOC, which saw the yuan
crosses spike higher, before they retraced a large part of their gains, with
Bonds holding around best levels.
- The domestic 3-/10-Year yield differential last trades around a little under
1.0bp flatter at 52.3bp, after registering a low of 50.9bp. The AU/U.S. 10-Year
spread continues to operate sub -20bp.
- The AOFM's issuance schedule revealed that there will be no issuance next
week, remember this week saw the launch of the new 2.75% 21 May 2041 Bond.
- YMU8's sell-off Thursday lacked follow through with an aggressive bounce ahead
of 55- (97.844) & 100-(97.833) DMAs. Bears now need a close below the 100-DMA to
end bullish hopes and below 97.795 to confirm focus on 97.675 2018 lows. Bulls
continue to look for a close above the 21-DMA (97.913) to gain breathing room.
- 3-Month BBSW fixed 0.9bp lower today, with the bill strip trading marginally
mixed last.
- Participants now focus on next week's AU CPI release.
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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