3-Year Bond futures last trade at......>

AUSSIE BONDS: 3-Year Bond futures last trade at 97.835 (-1.0 tick), while

10-Year Bond futures last trade at 97.320 (- 0.5 tick). The space has stuck to a

tight range, largely mirroring what has been seen in US Tsys. The domestic

3-/10-Year yield differential is last 0.1bp flatter at 57.9bp, as the modest

steepening apparent in early dealing was unwound.  The AU/US 10-year yield

discount has widened by around 2.3bp to 19.5bp.

- The latest I/L supply passed smoothly. 3-month BBSW fixed 0.5bp higher today,

at 2.005%, although the Bill contracts have stuck to a tight range in SFE hours,

trading unchanged to a tick higher across the white & red contracts.

- It is a light week for the domestic economic docket, curtailed by the Easter

holiday and heading in to next week's RBA decision. The broader risk tone & cues

from the US Tsy space are likely to be the drivers of price action. The 10-Year

future's bounce from the 55-DMA last week saw the contract flirting with the

Bollinger top (97.3415) only to remain capped around 97.3550-3850. Bulls now

need a close above 98.3850. Bears need a close below 97.2750 to ease bullish

pressure and below 97.1750 to confirm traction below the 55-DMA.