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Westpac note that "Australian bonds....>

AUSSIE BONDS
AUSSIE BONDS: Westpac note that "Australian bonds have had a nice outperformance
since last week's CPI. The message that there is no real inflation pulse in the
Australian economy appears to have become more solidly embedded into market
expectations and that has provided the underpinning for the AU-US 10yr bond
spread to move its record narrow level of -30bp. The relative monetary policy
backdrop between the two countries remains the largest catalyst of this
performance. While it would appear a crowded trade, we see little reason for the
thematic to reverse any time soon."
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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