Aussie bond futures have given back....>

AUSSIE BONDS: Aussie bond futures have given back most of yesterday's gains

across the board, with the 10-year future trading down 2 ticks at 97.2350 as

bears look to retest the recent low at 97.1950. 3-year futures trade down 2.5

ticks at 97.865, keeping the broader bearish trend intact. 

- 10-year yields are just off daily highs at 2.750% after taking out yesterday's

high to return the focus to the upside. 

- AU-US 10-year spread sits at -42.5bps and has barely moved today as both

markets trade in tandem, but a potential uptrend has formed since the Oct 4 lows

pointing to further narrowing. 

- AU-US 10-year real spread has dropped back to -18.6bps thanks to the large

drop in US inflation expectations providing support to real yields.