Aussie Bonds have eased a touch on.....>

AUSSIE BONDS: Aussie Bonds have eased a touch on the day, and were approaching

yesterday's lows, before stabilising, unwinding most/some of the gains that were

observed in SYCOM dealing.

- There was a lack of headline drivers apparent overnight.

- The AU/U.S. 10-Year yield spread last traded at -22.5bp, after touching

-23.7bp earlier on, while the domestic 3-/10-Year yield differential has

narrowed to ~55bp after the gyrations in both the long & short end of the curve

that were observed on Tuesday.

- 3-Month BBSW fixed around 1bp lower today, at 2.00%, with repo rates easing

and the front end of the AUD x-ccy basis curve tightening a tad. The front two

bill contracts trade a touch higher, with the remainder of the white and red

bill contracts last trading unchanged to 1 tick lower, in sympathy with Bonds,

unwinding the early bid.

- Focus now turns to Thursday's domestic labour market report, as well as next

week's AOFM issuance schedule after the pricing of the new 2.75% 21 May 2041

line yesterday.