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

AUSSIE BONDS: The space stuck to a tight range in the second half of the session
after Bonds moved higher on the Trump-induced risk off flows as the US President
ordered the US Tsy to consider $100bln in additional Chinese tariffs.
- 3-Year Bond futures last trade at 97.825 (+0.5 tick), while 10-Year Bond
futures trade at 97.330 (+1.0 tick), with both contracts a tick or so back from
the spike highs.
- The domestic 3-/10-Year yield differential is 0.6bp flatter at 50.4bp, while
the AU/US 10-Year yield spread sits 1.2bp wider at -15.9bp.
- The auction of a 3-Year futures basket Bond was very strong, with the cover
ratio topping 7x, providing an extra layer of support to the space, and possibly
allowing the domestic 3-/10-Year spread further room to steepen after
yesterday's 5bp jump.
- 3-Month BBSW fixed unchanged today, following yesterday's lower fix, with the
white and red Bill contracts last trading unch. to a tick higher.
- Focus now falls on the US labour mkt report, with an empty Aussie docket, with
further attention set to fall on Fedspeak from Chair Powell & voter Williams.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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