Aussie bonds have recovered from the...>

AUSSIE BONDS: Aussie bonds have recovered from the start of the session, futures

saw a brief blip higher at the SFE open, during SYCOM they saw a steady ascent

alongside U.S treasuries when Pres. Trump formally announced tax cuts and Fed

George supported Fed Chair Yellen's and Rosengren's hints further towards a Dec

rate hike. 3-Year futures last up 1 tick at 97.810 and the 10-Year future up 1

tick at 97.140, this week the 3-Year contract has moved within a tight range of

just 6 ticks but the 10-Year has been more reactive on above triggers as well as

N. Korea drama earlier in the week, moving within a range of 10.5 ticks.

- Yields are down across the curve within a tight range, 3-/10-Year spread at

0.3bp.

- No reaction from Aus Private Sector Credit figures out today, no surprise as

they came out unchanged and the same as surveyed MoM and YoY at 0.5% and 5.5%

respectively.

- This morning sources noted the IB strip was seeing light interest in what

looks like 2-sided flows, 'IBG/J (Feb/Apr Spread) has traded 03's 300 times, Mkt

is 03/04, 150 a side.'