Aussie bonds sit around 1.5 ticks......>

AUSSIE BONDS: Aussie bonds sit around 1.5 ticks off of best levels with 3-Year

futures at 97.910 (+3.0 ticks), while 10-Year futures last trade at 97.215 (+2.0

ticks).

- The space moved higher on news that Gary Cohn was stepping down as US NEC

Chair & that the US is considering applying trade tariffs on China. Bonds then

took a fresh leg higher on a decent enough auction of a 10-year futures basket

constituent (although the cover ratio moderated this time out) & soft domestic

GDP data, although the miss was flagged by RBA Gov. Lowe in an earlier address

(which offered little new on the MonPol front).

- The domestic 3-/10-Year yield differential last trades at 73.1bp (+2.0bp),

while the AU/US 10-Year spread now sits slightly tighter on the day at -5.7bp.

- The short end has edged higher outside of the front 2 Bill contracts, with the

remainder of the whites and red 1-2 ticks higher.