Aussie Bonds edged higher in early.....>

AUSSIE BONDS: Aussie Bonds edged higher in early SFE dealing, breaching the

SYCOM highs, with the space having little reaction to a solid enough auction of

the 2.50% 21 May 2030 Bond. The formal announcement re: the issuance of a new

2050 I/L bond weighed on duration, with the line set to come to market during

w/c Sep 17.

- The domestic 3-/10-Year cash yield differential last trades unchanged, after

some early flattening, last ~56.5bp, with the AU/U.S. 10-Year yield spread

hovering around -32.5bp following the pull back in AU Bonds.

- It is also worth noting that the AU/U.S. 30-Year yield spread has moved into

negative territory over the last couple of sessions.

- The Bill strip trades 1-2 ticks higher last, with activity petering out after

a busy enough start to the session.