Aussie bonds moved to session lows.....>

AUSSIE BONDS: Aussie bonds moved to session lows following the wage data, with

the 10-Year futures printing at 97.080, before moving back to 97.100. 3-Year

futures also moved to session lows of 97.795, and last trade at 97.815. The cash

equivalents currently yield 2.902% (+0.01bp) 2.149% (+0.5bp) respectively.

- The auction of a 10-Year Future basket constituent was well digested, despite

softer cover and a longer tail, as a much lower % of the take-up was received at

the high yield this time out.

- The completed construction work print for Q4 was notably softer than expected,

and the modest beat on the wage data is unlikely to alter the picture for RBA

monetary policy, as a result the bill strip sits relatively unchanged, with the

white contracts flat to a tick lower & markets pricing a circa 55% chance of at

least 1 hike from the RBA in 2018.