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The space stuck to a tight range,......>

AUSSIE BONDS
AUSSIE BONDS: The space stuck to a tight range, easing from best levels
alongside US Tsy futures on the back of stronger than expected domestic retail
sales & China Services PMI data and a notable uptick for the yuan.
- The domestic 3-/10-Year yield differential is around 2.9bp flatter on the day
after Aussie Bonds tracked the Tsy complex higher in SYCOM dealing, and as the
long end continues to outperform. The AU/US 10-Year spread is holding around
-25.0bp.
- Focus was on A$1bn worth of SAFA May 2028 issuance, which priced at 54.25 over
ACGB May 2028.
- The market easily digested the auction of A$800mn of the 2.75% 21 November
2029 Bond, issue #TB154.
- Bill strip activity has been limited with the white and red contracts dealing
unchanged to a tick higher. BBSW & repo rate fixings were little changed.
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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