An uneventful session for Aussie.......>

AUSSIE BONDS: An uneventful session for Aussie bonds, after dropping at the open

alongside UST's in a delayed reaction to the news that White House adviser Steve

Bannon had parted ways with the Trump administration.

- This initial leg lower was done on thin volumes with the 2-ticks lower in

3-Year seeing around 7.5k given. 

- Yields saw similarly subdued trade with very little paper changing hands in

the short end from midday Sydney onwards. There was some selling seen in the

immediate aftermath of the auction but yields quickly reverted to opening

levels. yields down 1-1.7bp, some flattening seen but the belly the biggest

mover, down 1.4-17bp.

- The AOFM sold A$800mln of the 2.75% Nov 2028 paper, A$100mln smaller than the

previous auction. The auction drew 2.6998%, around 0.6bp lower than previous

with cover of 2.9875 compared to 2.9829 at the previous auction and around 91.2%

allotted at high yield indicating bid strength was slightly weaker than the

previous auction. Still the AOFM will be encouraged after a weak 2029 auction

last week.