Aussie bonds slightly higher in SFE....>

AUSSIE BONDS: Aussie bonds slightly higher in SFE trade but still lower on the

session after falling during SYCOM hours matching the fall in UST's post NFP,

while the number was lower than expected the perception is that it will not

change the FOMC's bias towards hiking in 2018 which saw UST's finish lower after

the kneejerk higher.

- Data earlier showed the Australian construction industry expanded for the

eleventh straight month but pointed to a slowing in the overall growth momentum

as orders fell sharply mainly due to decline in engineering orders. The

Performance of Construction index fell by 4.7 points to 52.8 in December as new

orders fell 7.5 points to 49.2 and to the lowest level in nine months.

- Thin session for other data, Australia Foreign Reserves on the docket for

0530GMT, 1630AEDT. 

- ANZ launched A$ 3-,5-Yr benchmark snr unsecured notes, expected to price

tomorrow, Tascor plan new A$ 10-Yr. Corporate issues could keep bonds subdued.

- Focus is on yields which are approaching major levels, 2.15% and 2.80% in the

3-Year and 10-Year respectively are in focus.