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

AUSSIE BONDS: 3-Year Bond futures last trade at 97.770 (+1.5 ticks), while

10-Year bond futures trade at 97.150 (+2.5 ticks).

- The space ticked to lows after US President Donald Trump noted that the Ways &

Means Committee is working on more tax cuts by "November," but the move was very

limited. This came before a move to fresh highs, in line with US Tsys. While

there is little apparent in terms of fresh headline risk it is worth noting that

Trump has reintroduced questions re: the Chinese trade situation & North Korea

over the last 24 hours which may be hampering risk. Aussie Bonds were also

supported by a soft completed construction work reading.

- The domestic 3-/10-Year yield differential sits 1.0bp flatter at 64.7bp, while

the AU/US 10-Year yield differential trades 0.7bp wider at -21.0bp.

- 3 month BBSW fixed a meagre 0.06bp higher today.

- The white & red Bill contracts last trade a tick higher to a tick lower, with

2 way flow noted in IRU8. IB activity also picked up following the soft domestic

data release.

- Participants await a speech from RBA Gov. Lowe later on Wednesday.