Aussie bonds both took a slight bid....>

AUSSIE BONDS: Aussie bonds both took a slight bid at the start of the SFE open

as sources reported Nov IB's were hit 4x, both contracts steadied, undisturbed

by geo-political tension until they again took a slight bid on block trades,

YMZ7 rose two ticks as 1.5k was bought at 97.850 and 1.5k IBZ7 was bought at

98.495. the 3-Year contract was last up 2 tick on the session at 97.860 and the

10-Year was last down half a tick at 97.150. 

- On SYCOM the Aussie benchmark contracts moved alongside Tsys, dipping on the

U.S. September jobs report, which had a weak hurricane-affected -33K NFP (first

negative reading since 2010.) Both the 3-Year and the 10-Year contracts then

came up on a safe-haven bounce after rumours of another N. Korea missile.

- Yields are mixed across the curve, the 3-Year was last down 0.8bp and the

10-Year last up 0.5bp, making the 3-/10-Year spread 1.3bp. On Wednesday the AOFM

will issue A$3.5bln Nov 2020 bonds, this will be Australia's largest bond

auction. 

- Aus Sep Foreign reserves in, at A$74.9bln from A$76.3bln previously.