Aussie bond futures are off their......>

AUSSIE BONDS: Aussie bond futures are off their highs but still stronger on the

day with the 10-year note threatening to break above Monday's high, rising

0.4bps from yesterdays low to trade at 97.435. 

- The 3-year has broken above Monday's high to trade at 79.985 currently. 

- Bond strength is coming in spite of the rally in Aussie stocks, with the

ASX200 testing multi-year highs at 6310.2. Breakevens are also up slightly which

has seen 10-year real yields edge down 2bps on the day to trade at 0.7025%.

- The AU-US 10-year spread trades at -31.5bps, off its daily lows but still

within touching distance of its July 30 low. 

- The AU-US 10-year real yield spread has also fallen back to -8.1bps, helping

to keep the AUD under pressure.