Aussie bonds finished the session......>

AUSSIE BONDS: Aussie bonds finished the session higher, with 10-Year futures up

4 ticks at 97.145, as cash yielded 2.862% (-3.9bp), while 3-Year futures were up

3.5 ticks at 97.855, as cash yielded 2.113% (-3.1bp).

- Aussie bonds moved to session lows following the marginally better than exp.

wage data, before printing fresh highs late on as the data shouldn't materially

change the outlook for the RBA, US Tsy buying was noted as Japanese equities

erased their morning session gains & the AU/US 10-Year curve moved into negative

territory, last at -2.3bp.

- The auction of a 10-Year Future basket constituent was well digested, despite

softer cover and a longer tail, as a much lower % of the take-up was received at

the high yield this time out and as the non-existent premium over US paper did

little to cause a noticeable dent in demand.

- The short end followed bonds & US paper higher in late dealing with the white

bill contracts 1-3 ticks higher at the close of play.