Aussie Bonds have continued their......>

AUSSIE BONDS: Aussie Bonds have continued their outperformance vs. U.S. Tsys, as

they remain comparatively attractive to the likes of Japanese investors on an FX

hedged basis, with the AU/U.S. 10-Year spread grinding to fresh cycle lows below

-30bp, last -32.6bp, while the domestic 3-/10-Year yield differential sits a

touch flatter today, around 57.5bp last.

- The space also showed little to no reaction as the BOJ failed to offer a fixed

rate buying operation in the JGB space, but pushed to session highs as the

operation came to fruition late in the day.

- 3-Month BBSW fixed unchanged today with the bill strip trading a tick better

off to a tick worse off last, in what has been a limited, low volume session.

- Traders now look to next week's AU Jun/Q2 retail sales release followed by the

RBA decision on 07 August.