Aussie Bond futures trade just shy.....>

AUSSIE BONDS: Aussie Bond futures trade just shy of best levels, after YMZ8

briefly topped yesterday's high.

- 3-/10-Year cash differential little changed at 54bp, with the XM/YM spread at

51.5.

- Looking at the Bill strip, front end under some modest pressure, with whites

unchanged to 2 ticks lower, fronts leading move, while reds trade 1-2 ticks

higher, extending recent flattening. 3-Month BBSW fixed 1.0bp higher today,

after 3-Month USD LIBOR jumped ~2.7bp Wednesday. 57 day repo ops conducted at

2.06%, with year-end funding in focus.

- Focus today falls on AU trade balance and retail sales data for October after

yesterday's GDP data revealed consumer consumption growth (a focal point in RBA

reasoning at present) slowed in Q3.

- RBA Deputy Gov Debelle will speak later in the day (in the London morning),

speech titled "Lessons and Questions from the GFC.