Aussie bonds finished the SFE..........>

AUSSIE BONDS: Aussie bonds finished the SFE session marginally higher but have

traded lower on the re-open with the 3-Year future last 1 tick lower at 97.920

and the 10-Year future last 2.0 ticks lower at 97.26 as comments from BoJ Gov

Kuroda did little to effect the space. The domestic 3-/10-Year yield

differential is still sub-70bp. White bill contracts are a tick lower

- Comments from the Vice Chair of the Chinese Metals association, stating that

China is among nations likely to retaliate to US measures helped put a bid in

earlier in the session.

- Tsy's underperformance relative to Aussie paper on the back of Kuroda's

comments allowed the AU/US 10-Year yield differential to widen back out to 9bp

after it had narrowed earlier.

- For 10-Year futures bulls will take comfort in support emerging on dips back

towards 97.175. Bulls still need a close above the 200-DMA to hint at a move

back to 97.5200 Dec highs and above 97.3850 2018 highs to confirm. Bears still

need a close below 97.1750 to shift focus back to 97.0037-0450 where 2018 lows

and the LT bull channel base are noted.