Aussie bonds stay within ranges........>

AUSSIE BONDS: Aussie bonds stay within ranges following the tranche of domestic

and Chinese data.

- Melbourne Institute Inflation rises 0.1% on the month, in line with May. The

annual reading up 2.7% from 2.3% last time out. HIA New Home Sales fall 6.9% on

the month after a 1.1% rise in May, reversing two months of gains.

- China PMI's saw a slight miss against estimates. Manufacturing at 51.4 in

July, down from 51.7 in June and a miss against 51.5 expected. Services at 554.5

from 54.9 in June. The index remained in expansion, and the breakdown suggests

that while foreign demand waned domestic demand held up well with only a slight

drop in the imports index. Iron in Singapore rose over 5% after the data, but

failed to significantly impact Aussie bonds.

- Decent private sector credit data did see Aussie bonds come off their highs.

The figure rose 0.6% on the month in June against expectations for 0.4%, the

annual reading rose 5.4% against 5.2% expected. YMU7 dipped to 98.03 from 98.05

pre-data. Yields mostly flat across the curve, some slight steepening with the

3-5 Year sector down 1bp, 10-Year flat at 2.684%.