Aussie Bonds have tracked T-Notes......>

AUSSIE BONDS: Aussie Bonds have tracked T-Notes thus far & operate at SFE

session highs. 3-Year Bond futures trade 0.5 tick higher at 97.775, while

10-Year Bond futures trade unchanged at 97.190. Benchmark 3-Year paper yields

2.184%, while 10-Year benchmark paper yields 2.797%.

- The domestic 3-/10-Year yield differential last trades 0.3bp steeper at

60.6bp.

- Commonwealth Bank of Australia have pushed back their forecast for the first

hike in the Reserve Bank of Australia's cash rate to February next year against

its previous forecast for a November hike. CBA chief economist Michael Blythe

said that the macroeconomic backdrop indicates that the next move in interest

rates is up but the RBA's patience will be lengthened due to new uncertainties

from falling dwelling prices, funding cost pressures and tightening lending

standards.

- Cash Tsys are closed in Asia-Pacific hours owing to a Japanese holiday, which

may limit Aussie Bonds.

- The white & red bill contracts trade unchanged to a tick lower.