AUSTRALIAN CREDIT/FOREX (0200 GMT) SNAPSHOT__________

FOREIGN EXCHANGE (against previous Sydney close)

<AUD=> 0.8305/10 (0.8129/32) 1.2070/88 (1.2070/88)

<AUDJPY=R> 88.56/65 (86.60) 106.66/70(106.66/70)

<AUDEUR=R> 0.5730/35 (0.5730/35)<EUR=> 1.4490/94 (1.4490/94)

DEBT FUTURES CASH YIELDS

90-DAY BILL<YBAc1> (DEC) 93.140(-0.040) 7.37(7.49)

3-YR BOND (DEC) 94.495(-0.185) 5.55(5.39)

10-YR BOND (DEC) 94.230(-0.230) 5.79(5.58)

3/10 SPREAD +0.265 (+0.215) AUST/US 10-YR SPREAD +201(+197)

S&P/ASX 200 4976.7(4804.1) US10-YR 3.78 (3.61)

__________________________ Sept 22_____________________________

DATA: Sales of new motor vehicles in Australia fell 3.5 percent in August from the previous month on a seasonally adjusted basis, the Australian Bureau of Statistics said on Monday.

DEBT: The Australian Office of Financial Management tendered treasury bonds maturing in 2021 bonds for a yield 5.7866 percent. The AOFM sold bonds worth A$400 million.

NEWS: In its regular daily money market operation, the RBA added A$2.025 billion ($1.69 billion) in repurchase agreements, compared to a estimated deficit of A$1.969 billion.

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* The Australian dollar was firm above 83 U.S. cents, buoyed by better appetite for riskier assets after the U.S. government announced a rescue plan that could help stabilise the battered financial system.

* The U.S. Treasury said it would buy up bad mortgage-related debt from financial institutions, including U.S. units of foreign banks, to try and stem the worst financial crisis in decades.

* Shortly after midday, the Aussie was at $0.8305/10 against the U.S. dollar, having risen to a three-week high of $0.8403 earlier in the session, and way above $0.8129 late here on Friday.

* The Aussie jumped against the yen, trading near two-week highs as investors returned to leveraged carry trades. The Aussie was at 88.56 yen, off a two-week high of 89.79 yen struck offshore, but up from 86.60 yen late on Friday.

* The Aussie had tumbled in recent weeks as investors unwound risky carry trades, while chaos in credit markets dimmed the outlook for global growth and commodity prices.

* With demand for riskier assets and higher-yielding currencies back in vogue, a sell-off in Australian bonds gathered pace.

* Three-year Australian bond futures were 0.185 points lower at 94.495, while the 10-year bond contract fell 0.230 points to 94.230.

Source: http://www.afxnews.com

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