16 May – 20 May 2016

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The 3-10 year spread fell 2bps to 70bps as the front end of the curve rose on the back of the market lowering the probability attached to another RBA rate cut after the May minutes indicated some hesitation on the part of board members.

The 3-20 year spread took a break from its recent rising trend and fell back to 134 bps has been rising since late April. (The 20 year bond futures contract has only existed since September 2015 so some caution is required here.)

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