Forex News: Australian government bonds to squeeze higher in Asia session on continued support flowing out of risk-averse stock markets. Focus is again on weak financial stocks, with the U.S. mortgage sector under fresh scrutiny. Damien McColough, strategist at Westpac, says a lack of domestic data will ensure thin volumes through the local session. Adds local bonds are starting to look expensive after a solid rally over last month. Further price gains would suggest investors are starting to factor in a rate cut. McColough says while RBA appears unlikely to hike further, speculation of a rate cut is premature. September 3-year bonds closed overnight session at 93.385, up 4.5 bps; 93.35-93.40 range will contain market in Asia.
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