Ausasie bonds saw quiet trade on.......>

AUSSIE BONDS: Ausasie bonds saw quiet trade on Thursday, yields dropping at the

open in tandem with the US following the FOMC, while futures rose during SYCOM

and after a brief spate of buying at the SFE open saw 3 tick ranges in both the

3-&-10-Year futures.

- After opening at 98.01 YMU7 saw a flurry of buying activity with approximately

10k paid up to 98.04. The contract then traded in a range from 98.02-04. 

- The 10-Year future was similarly quiet, the contract has now moved in a 12

tick range since the start of August.

- Australian import/export price data was ignored by markets. The data was a

miss on both counts against consensus in Q2 after a beat in Q1, this was the

first decline in terms of trade in five quarters.

- Chinese data was also ignored, the June industrial profits reading rising

19.1% annually, with rapid production growth and acceleration of product sales

attributed for the strength.

- Yields head into the close lower, having dropped at the open with rangebound

trade thereafter. Moves mixed, 3-Year -3.6bp, 10-Year -4.1bp, 30-Year -4.1bp