Another busy overnight session in Aussie.....>

AUSSIE: Another busy overnight session in Aussie rates, as US 10-Year yields

broke through the key 2.60% level. 

- Aussie futures followed the sell-off on good volume, with YMH8 testing

yesterday's post-employment 97.72 low, as the curve held steady at 56.5. 

- Flows were active across the curve, with good interest in receiving short-end

RBA dates and IRS, supported by the view that cash to 3-Year yields are at

extreme levels.

- AUD/USD is last up 5 pips at 0.8005, but off early session highs at 0.8012.

Hearing the dip after the jobs data beat yesterday was longs bailing on

expectations of an even stronger number as well as comparatively weak Full Time

Jobs gains. The pair now up over 1% on the week so far.

- Limited data on the session in Asia, focus will likely be on moves in USD and

UST's as the US government seeks to avoid a government shutdown, the current

funding deadline is January 19. Democrats in the Senate claim to have votes that

would block a funding extension to Feb 16, seeking to force the GOP's hand on

immigration reform.