Aussie bonds steadied from the start...>

AUSSIE BONDS: Aussie bonds steadied from the start of the session, futures saw a

brief blip higher after Japan data was released, 3-Year futures last up 2 ticks

at 97.820 and the 10-Year future up 2 ticks at 97.140, this week the 3-Year

contract has moved within a range of just 6 ticks but the 10-Year has been more

reactive on Fed Hawkish comments recently as well as N. Korea drama earlier in

the week, moving within a range of 10.5 ticks. 

- Yields are down across the curve, the 3-/10-Year spread has widened on the

session, earlier at 0.3bp, now at 0.7bp. 

- Aus Private Sector Credit figures came out unchanged and the same as surveyed

MoM and YoY at 0.5% and 5.5% respectively, looking to Aus PMI out on Monday.

- The Aussie auction of A$800mln 2.75% 2028 brought in a strong cover of 5.4275x

up from 4.0267x previous despite this, the Aussie bond markets were non reactive

ahead of Labour Day on Monday.

- This morning sources noted the IB strip was seeing light interest in what

looks like 2-sided flows, 'IBG/J (Feb/Apr Spread) has traded 03's 300 times, Mkt

is 03/04, 150 a side.'