AUSSIE BONDS: Futures Firm, 10yr Challenging 20-day EMA Resistance, Sep PMIs Dip

Aussie bond futures are holding a positive bias in the first part of Wednesday trade, albeit slightly off best levels for the session. We remain up 5-5.5bps, with the 3yr slightly firmer. YM was last 95.04, against session highs of 95.055, while the 10yr future (XM) was last 94.725 (session highs today sit at 94.74). This leaves 10yr futures close to the 20-day EMA resistance point (near 94.74). ACGB yields hold 4-5bps lower, with the front end leading. US TSY futures are holding higher, but sit off best levels (TYZ6 last 106-03+, against a session high 106-04+). Oil futures are holding lower, but up from lows (WTI supported sub $90/bbl so far). * Earlier data in Australia showed softer preliminary PMI readings for Sep. The manufacturing index fell to 49.3 from 52.0 in Aug. This is the softest read since end 2024. The services PMI, which tends to correlate better with Australian GDP, also fell but remained at a higher relative level (51.4 from 53.2 in Aug). Also, Q3 services PMI was also higher than Q1 and Q4 signalling resilience. Cost growth rose to its highest for Q3 driven by services but importantly selling price inflation also increased implying increased cost pass through bu