Aussie bond futures re-tested their....>

AUSSIE BONDS: Aussie bond futures re-tested their SYCOM lows in SFE trade, as

stronger than expected Chinese GDP & economic activity data applied pressure to

the space, but the contracts trade off worst levels at writing. Early Sydney

trade saw the space push higher on the back of softer than expected NZ CPI data

from across the Tasman. YM last -1.5 ticks, with XM -3.0 ticks. YM/XM continues

to steepen, at 53.0 ticks last, with the cash equivalent at 49.0bp.

- Bills trade unch. to 3 ticks lower through the reds. 3- & 6-Month BBSW fixings

hit fresh record lows, as funding worries continue to recede. OIS continue to

favour RBA cuts, with the recent large bond redemption, hefty corporate

dividends and the RBA's mention of funding market matters in the Bank's March

meeting minutes all helping to alleviate pressure in the funding space over the

last month or so.

- RBA repo operations saw A$920mn worth of 21-day ops dealt at an average of

1.813%.

- Participants now look to tomorrow's domestic labour market data, a key area of

focus for the RBA.