Aussie Bonds eased back from session...>

AUSSIE BONDS: Aussie Bonds eased back from session highs, with 3-Year Bond

futures trading at 97.795 (+1.0 tick), while 10-Year Bond futures trade at

97.230 (+1.5 ticks), with a flurry of buying noted in the early part of the

session.

- A 10-Year basket Bond garnered strong demand in the latest AOFM auction, but

futures didn't react to the supply.

- The domestic 3-/10-Year yield spread operates at 59.1bp (unch.) while the

AU/US 10-Year spread is 2.3bp wider at -20.0bp.

- 3-Month BBSW fixed 2.5bp lower at 1.995% today, with the white & red Bill

contracts last trading unchanged to 2 ticks higher on the day, decent buy side

flow was noted in IRU8 in early dealing, although the strip has edged away from

session highs, alongside Bonds.

- News flow has been light thus far, with Fedspeak forming the focal point for

traders on Monday. Australian retail sales data will hit on Tuesday, which forms

the major domestic risk event this week. Traders will eye the release of the

Australian Budget, also due on Tuesday.