Aussie bonds declined alongside U.S....>

AUSSIE BONDS: Aussie bonds declined alongside U.S Tsys on SYCOM, Tsys saw heavy

selling on tax reform, hawkish comments from Fed Chair Yellen which was

overspill from the Asia session and also corporate rate lock hedges. Both the

Aussie 3-Year and 10-Year managed to stabilize during SYCOM and coming into SFE

are around the same levels, both moving within a 2 tick range. The Aussie 3-Year

is down 2 ticks at 97.810 and the 10-Year last down 2 ticks at 97.140

- No reaction to data, Aus August Job Vacancies came in at 6% from 1.5%, RBA's

Debelle will talk in London later schedules for 1000BST 1900 Sydney.

- All yields are up across the curve and we can see some steepening too, the

3-Year/10-Year spread last at 3.7bp - The AUD is under heavy selling pressure,

the rate eased from near $0.7850 to a base of $0.7829. Traders have noted softer

commodities behind the move.