Aussie Bonds operated in a sideways....>

AUSSIE BONDS: Aussie Bonds operated in a sideways manner for most of the

session, with 3-Year Bond futures last trading at 97.850 (+1.0 tick) and 10-Year

Bond futures last at 97.335 (-0.5 tick).

- The domestic 3-/10-Year yield differential traded 1.3bp steeper at 57.2bp,

with the AU/US 10-Year discount widening by 3.1bp to -18.2bp, as the US Tsy

curve steepened a tad.

- 3-month BBSW fixed 0.5bp higher today, at 2.00%, with the white & red Bill

contracts trading unchanged to a tick lower. 

- 10-Year Bond future's bounce from the 55-DMA last week sees the contract

flirting with the Bollinger top (97.3415) and pressuring the 97.3850 resistance.

Bulls now need a close above 98.3850, while bears now need a close below 97.2750

to ease bullish pressure and below 97.1750 to target 2018 lows.

- 3-Year Bond futures have gained traction back above the 55-DMA. Bulls now need

a close above 97.870 to ease bearish pressure. Bears continue to focus on 2018

lows while the 97.870 caps.