Westpac note that "while we spend a....>

AUSSIE BONDS: Westpac note that "while we spend a lot of time focusing on market

price action from a technical perspective, it is often worthwhile examining the

markets responses to the broad data pulse and to surprises within the ongoing

high frequency data set... U.S. data has been positively surprising relative to

forecasts for some time, however 10yr bond yields have barely responded at all

and remain at the lower end of their recent range. That is likely largely as a

result of the surge in COVID cases and mortality rates that suggest the next few

months will see the US face significant economic difficulties. With that in mind

it is certainly difficult to build a bearish case for USTs at present." In

Australia, "the 3yr bond yield is now largely unchanged due to its anchoring by

the RBA, and the data pulse looks like it may have peaked. If so, the RBA may be

more comfortable allowing the bond yield to respond to the data and tick down

the couple of points that would take it off the markets radar for now."