Aussie bonds head into the close.......>

AUSSIE BONDS: Aussie bonds head into the close slightly lower and well off

session highs. After opening higher alongisde UST's futures initially jumped

higher on Australian labour market data. The headline figure gained much lower

than expected at 3.7k (est. 18.8k), but previous month job gain revised up by

around 7k. 

- Full time employment saw a gain of 24.3k, while part time jobs fell 20.7k. -

Employment rate fell to 5.4% but this can be attributed to a 0.1ppt fall in the

participation rate to 65.1%. Aussie bonds initially jumped higher, YMZ7 hit

session highs of 98.08 but quickly fell back to new session lows of 98.03.

- Yesterday saw a big rally in Aussie bill and bond futures as Q3 Wage Price

Index data came in below estimates. In futures both YM (3-Year) and XM (10-Year)

increased by 12.3k and 15.9k respectively, suggesting fresh longs.

- The curve twist flattened, yields in the short end rose, 3-Year yield up 0.9bp

at 1.938% pushing the 3/10-Year spread to 64.8bp, 5bp lower on the week.