Aussie bonds gained on SFE, the........>

AUSSIE BONDS: Aussie bonds gained on SFE, the 3-Year gained 3 ticks, last at

97.860 and the 10-Year gained 4 ticks, last at 97.175. Following the 10-Year

bond auction which was part of the underlying basket for the 10-Year future,

Aussie bonds gained, this was despite the fact bid cover came in lower than that

of previous cover on the same line at 3.9629x from 4.34x and with a higher

average yield of 2.8161% from 2.7834%... Sources quoted a large clip of the

3-Year future traded offscreen post auction, 10k at 97.84, assisting the ascent.

- No domestic data for Australia but China property prices came in strong, 67 of

70 cities prices were higher YoY.

- On the SYCOM Aussie bonds declined with Tsys Treasuries ended Fri weaker, amid

Fed Chair speculation and Thursday GOP-led Senate passage of fiscal 2018 budget

which spurred tax reform hopes. Rising chances of Dallas Fed Powell as next Fed

chair (58%, up 19% after Pres Trump met Fed Chair Yellen late Thu) added to

move, with Tsy futures making new lows for week.