Aussie Bonds have moved higher, with...>

AUSSIE BONDS: Aussie Bonds have moved higher, with the move representing spill

over from a dovish RBNZ across the Tasman, although the uptick in Chinese stocks

allowed the space to tick back from best levels.

- The domestic 3-/10-Year yield differential sits a touch flatter at 58.3bp

last, with the AU/U.S. 10-Year yield spread sitting just below -30bp.

- The Bill strip has also been dragged higher, likely on spill over from the

RBNZ's shallower rate path, with flattening apparent, as the space trades

unchanged to 5 ticks higher, despite 3-month BBSW fixing some 0.5bp higher

today. The IB strip is little changed.

- Corporate issuance again in vogue today, with Sumitomo Mitsui's Sydney branch

launching 2-Year paper after yesterdays A$300mn 3-Year fixed offering from HSBC

priced at 73bp over BBSW, while CBA mandated for 3- & 5-Year paper.

- Focus is on the RBA's SOMP, due tomorrow, although Gov. Lowe likely revealed

the key tweaks to the forecasts in his address yesterday.