3-Year futures closed at 97.890........>

AUSSIE BONDS: 3-Year futures closed at 97.890 (-4.5 ticks) while 10-Year futures

closed at 97.205 (-5.0 ticks). The pull back from recent highs accelerated as

the BoJ trimmed the size of its super-long end purchases in today's Rinban

operations. Yields for the respective cash equivalents last sit at 2.085%

(+4.3bp) and 2.808% (+4.9bp).

- The AU/US 10-Year spread remains well entrenched in negative territory, last

at -9.0bp, but back from early session wides.

- The November 2022 bond auction was well received as the cover ratio moved

higher and the number of bidders increased substantially to 55 from 32.

- The white bill contracts were 2 ticks lower, excl. IRH8 which was unch.

- For the 10-Year future the recovery from dips back towards the LT bull channel

base (97.0037) off 2008 lows looks to be in trouble with H18 remaining capped at

the daily bear channel top with key MAs noted above. Bears now look for a close

< 97.1750 to shift focus back to 97.0037-0450 where 2018 lows and the LT bull

channel base are noted. Bulls now look for a close > 200-DMA to target 97.5200.