Aussie bonds are lower on the..........>

AUSSIE BONDS: Aussie bonds are lower on the session, but saw a brief blip higher

at the SFE open on some dip buying after significant drops in the wake of the

FOMC announcement. The FOMC adopted a more hawkish tone, signalling B/S run off

in October and putting a Dec hike on the table. 3-Year futures last down 6 ticks

at 97.72, 10-Year future down 5.5 ticks at 97.085. The 10 year is currently

seeing contract lows after a harder sell off than the 3-Year post FOMC

announcements.

- Governor Lowe is to speak in Perth, the topic of his speech is 'The Next

Chapter,' which could mean anything if speculating but most likely he will

mention the Australian economy and its monetary policy. The RBA's Ellis

yesterday spoke on the global economy, saying the pickup of the global economy

will be key to the prospects of the Australian economy, the RBA has warned

previously too many home-owners are in debt.

- Yields are on the rise through this session, relatively mild steepening of the

curve the 3-Year up 5.0bp and the 10-Year up 5.0bp.

- The AOFM sold A$500mln 77-Day Bills, cover was at 3.3x.