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The Trump/EM generated risk off........>

AUSSIE BONDS
AUSSIE BONDS: The Trump/EM generated risk off flows dragged the space higher
during the SYCOM session, leaving the domestic 3-/10-Year yield differential a
little flatter, as AU Bonds continued to outperform their U.S. Tsy counterparts
(AU/U.S. 10-Year yield spread last ~-33.5bp).
- The space drew further support from the RBA's 2018/19 corporate plan which
noted that high debt levels could complicate future policy decisions, and that
high debt could make the economy less resilient to shocks. The comments led to
the AU 3-Year yield trading below 2.00%, with the active 3-Year Bond future
trading above 98.00 for the first time since December of 2017.
- The Bill strip last trades 1 to 4 ticks higher. 3-Month BBSW fixed nearly
0.7bp lower today, at 1.9450%.
- The RBA MonPol decision provides the highlight of the AU docket over the next
week, with GDP input data in the form of inventories, current A/c & company
profits all due ahead of the final national account print on Wednesday.
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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