3-Year futures have failed to break....>

AUSSIE BONDS: 3-Year futures have failed to break below their SYCOM low, while

10-Year futures trade through their own overnight low, as steepening crept into

the curve. There has been little in the way of notable domestic headline flow,

with the broader risk-on feel adding some pressure to the space. The latest AOFM

weekly issuance schedule held no surprises. Moody's suggested that Australia's

government debt level will remain moderate, supporting its credit quality &

reflecting its high economic strength. YM last trades -3.0 ticks, with XM -6.0

ticks. YM/XM trades at 42.5, with the cash equivalent at 38.2bp. The AU/U.S.

10-Year yield spread trades at -62.6bp. Bills trade 2-4 ticks lower through the

reds. RBA repo ops saw $1.52bn worth of 34-day operations dealt at an average of

1.882%.

- Next week's domestic docket is packed with risk events. Monday brings the

release of the latest NAB business survey, Tuesday will see the RBA issue its

latest monetary policy decision, the release of the latest government budget,

and the monthly building approvals print. Retail sales and trade balance data is

due Wednesday.