Aussie bonds seeing quiet trade........>

AUSSIE BONDS: Aussie bonds seeing quiet trade again, the data was mainly

shrugged off by markets. The data saw an employment gain of 27.9k in July

compared to an expected gain of 20k, while the jobless rate dropped to 5.6% from

a revised 5.7% in June.

- Looking at the breakdown of the data full time jobs declined by 20.3k while

part-time jobs rose 48.2k, the participation rate also rose 0.1ppts to 65.1%.

- Aussie bonds rose marginally on the release as markets focused on the fall in

full time jobs, sources saying this implies weaker pressure on wages and thus

inflation going forward. The rise has been limited as the broader trend in the

notoriously volatile jobs data has been positive, the 6-month average of jobs

gains is now the highest since late 2010 at 33k per month.

- Aussie bond futures are now back to session highs after initially dipping

alongside some minor weakness in UST's. 3-Yr future up 2 ticks at 98.04, 10-Yr

up 3 ticks at 97.37. Yields lower across the curve, the opening gap lower

initially recouped slightly on the sluggish sell off, but the data dropping

yields back to session lows, yields down 1.9bp-3.1bp, curve bull flattening.