Aussie bonds opened SFE lower and......>

AUSSIE BONDS: Aussie bonds opened SFE lower and saw a slight move lower in early

trade that was accelerated after the strong August labour market data. 3-Year

future last down 6.5 ticks at 97.905 selling off some 4 ticks post data. During

SYCOM US Tsy's did see some downside but were more resilient than Aussie bonds,

as Aussie bonds were affected by the large investment grade supply from CBA with

the labour market data exacerbating the move. 

- Yields today are up across the curve, moves are slightly uneven post

employment data with some flattening seen on the curve, the last 30mins has seen

a 2.5bp rise with a 6.3bp rise on the whole session in the 3-Year sector. The

Aus labour market data just out whereby unemployment rates have stayed the same,

participation rates have increased and employment changes are positive, almost

doubling from the previous month. Since the start of the week the 3-10-Year

spread has widened by around 3bp, coming down today after positive data

mentioned above. The run of positive data releases recently has cast doubts on

the dovish stance of the RBA and the short end sold off harder.