Aussie bonds took a dip on the open....>

AUSSIE BONDS: Aussie bonds took a dip on the open as risk on sentiment took hold

in Asia; strong US GDP and ADP data coupled with an upbeat growth outlook from

Australian treasurer Morrison saw the . Futures hit session lows after strong

Aussie Capex data. Private capital expenditure data for Q2 rose 0.8% after a

revised 0.9% print in Q1. The reading is expected to contribute positively to Q2

GDP next week. ANZ add that "the outlook for spending through 2017-18 was

revised significantly higher. This was driven by the non-mining sector, with the

reported estimate of AUD69.7bn implying that spending will rise by 8.3% y/y."

- Strong China data in the form of manufacturing and services PMI also pushed

bonds lower. 

- Yields rose across the board, with the curve seeing some bear steepening -

3-/10-Year spread is some 2.9bp wider at 65.9bp, while the AU/US 10-Year spread

is off highs of the session at 56.6bp, but still near the widest levels since

May 2016 and some 2.5bp wider on the session.