Aussie bonds managed to print fresh....>

AUSSIE BONDS: Aussie bonds managed to print fresh session highs as US Tsys

recovered from their Asia-Pacific session lows, although there was little in

terms of fresh catalysts apparent for the recovery. Fixed income assets had

eased from best levels on the back of North Korea stressing that it was willing

to work towards de-nuclearisation & to sit down with the US.

- 3-Year Bond futures last trade at 97.890 (+5.0 ticks), with 10-Year Bond

futures last at at 97.395 (+6.0 ticks) The domestic 3-/10-Year yield

differential is 0.4bp steeper at 56.2bp, while the AU/US 10-Year yield

differential is 1.0bp tighter at -18.6bp. IRM8 continues to trade at or around

unchanged levels following the move higher in today's 3-Month BBSW fix, while

the remainder of the white & red contracts are 1 to 5 ticks better off.

- XMM8 has found support around the 200-DMA (97.2967) this week providing the

impetus for a rally that is pressuring 2018 highs. Bulls look for a close above

the 100-WMA (97.4691) to confirm a break. Initial support is now noted at

97.3550 but bears look for a close below the 200-DMA to hint at a correction

back to the 55-DMA (97.2013).