Aussie bonds opened SFE trade..........>

AUSSIE BONDS: Aussie bonds opened SFE trade higher, moving up alongside UST's in

risk off trade. The move higher was accelerated after a miss in GDP data with

the breakdown revealing a worrying slowdown in household consumption. The miss

in the data saw the odds of a hike in 2018 drop to around 50% from 75% prior to

the data. 

- Futures continued to tick higher throughout the session as markets digested

the new hike expectations, 3-Year futures heading in to the close at 98.04,

10-Year futures at 97.47. Yields lower across the curve, belly seeing heavy

buying to twist steepen the curve. 3-/10-Year spread 2.6bp tighter (briefly

touched 56bp earlier in the session, tightest since October 2015), 3-/30-Year

spread 1.8bp wider.

- Some decent interest in the roll, the spread tightening 0.5 ticks to 1 tick,

some 10k given at this level and offered over in 6k near the end of trade.