Aussie Bonds have ticked higher in.....>

AUSSIE BONDS: Aussie Bonds have ticked higher in early SFE dealing, supported by

heaving buying activity in YMZ8 & month end extension flows, as yields soften by

1.5-2.0bp across the curve.

- The domestic 3-/10-Year domestic yield differential last trades unch. at

~61.0bp, with the AU/U.S. 10-Year yield spread at ~-37.5bp last, after U.S. Tsys

underperformed local Bonds on Thursday.

- The uptick in Bonds, along with 3-Month BBSW fixing 0.8bp lower today has

supported the Bill strip, which trades unch. to 2 ticks higher last.

- Participants look to the AOFM's weekly issuance schedule with interest, ahead

of next week's RBA MonPol decision, AU trade data & retail sales. It is also

worth noting that RBA's Heath will make an appearance next week.