Aussie Bond futures finished just......>

AUSSIE BONDS: Aussie Bond futures finished just back from best levels.

Participants likely seeing the RBA's nod towards positive wage developments,

even though the Bank noted that any developments on the matter are likely to be

gradual in nature. Talk re: tighter credit matters noted. "Ongoing trade

tensions" also mentioned. All in all there was little in the way of notable

developments in the statement, which limited any reaction, with tomorrow's AU

GDP release providing the interest in terms of economic releases this week.

- AU paper lagged Tsys during the session, despite tracking the move higher

early on, with the AU/U.S. 10-Year yield spread trading at ~-41bp, ~2bp higher

on the day.

- 3-Year futures are closing in on their October highs, with 10-Year bulls

looking to the early September highs, after the contract breached its October

peak. The domestic 3-/10-Year cash yield differential deals at ~54.0bp, after

trading closer to 60bp Monday.

- Bills traded flatter, with the whites and reds closing 1 tick lower to 6 ticks

higher. 3-Month BBSW set over 1.0bp higher today, weighing on front end.