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 stabilise during SYCOM and going into SFE

were around the same levels, even after talks from Rosengren came in supporting

Yellen's comments for gradual hikes but both contracts began to decline after

Aus August Job Vacancies came in at 6% from 1.5%, their largest since 2010 and

Pres. Trump has outlined plans for the latest tax reform announcements,

positively received by the markets as he stipulated the plan includes lower

taxes for the middle class. both moving within a 2 tick range. The Aussie 3-Year

was last down 3 ticks at 97.800 and the 10-Year was last down 6.5 ticks at

97.1200.

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

3-Year/10-Year spread last at 3.8bp.

- The AUD came under heavy selling pressure in Asia, the rate eased from near

$0.7850 to last $0.7820. Traders noted softer commodities behind the move.