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YM & XM registered fresh session.......>

AUSSIE BONDS
AUSSIE BONDS: YM & XM registered fresh session highs late on SYCOM as broader
risk-off flows gathered steam after FT headline noted "U.S. turns down China
offer of preparatory trade talks." The article focused on prep talks due this
week ahead of top Chinese trade envoy Liu He's visit to Washington next week,
which will go ahead. The headline weighed on risk assets before White House econ
advisor Kudlow played down the report, although he did allude to several
sticking points in the talks.
- YM last 2.5 ticks higher on the day, while XM trades 2.0 ticks higher. YM/XM
last 51.5, with the cash 3-/10-Year yield differential last 49.2bp.
- Little spill over noted from the marginally stronger than exp NZ CPI print.
- The Bill strip trades unchanged to 2 ticks higher through the whites and reds.
RBA repo ops saw $280mn worth of 37-Day ops dealt at 2.086%, with A$2.180bn
worth of 63-Day ops dealt at 2.089%.
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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