3-Year Bond futures moved back from....>

AUSSIE BONDS: 3-Year Bond futures moved back from session lows as buyers stepped

in to protect the Bollinger band base (97.790) and last trade at 97.835 (+1.5

ticks), while 10-Year Bond futures last trade at 97.335 (-2.5 ticks).

- The domestic 3-/10-Year yield differential sits 4.3bp steeper at 50.7bp, while

the AU/US 10-Year yield spread has widened by 1.5bp to -15.7bp.

- 3-Month BBSW's run of failing to fix lower came to an end today, as it fell by

1.0bp, representing the first downtick since mid Fed. The white & red Bill

contracts last trade 2 to 3 ticks higher. This of course comes after the RBA

commented on the rise in borrowing costs in its latest statement (made on

Tuesday).

- From a technical perspective, 10-Year Bond future's topside follow through has

been lacking on fresh 2018 highs with Wednesday's sell-off seeing focus back on

layers of support between 97.1750-2930 where key DMAs are noted. Bears now look

for a close below 97.1750 to confirm focus on 97.0450-0800 where 2018 lows are

found. Bulls now need a close above 97.4000 to ease bearish pressure.