Aussie bonds took a strong bid after...>

AUSSIE BONDS: Aussie bonds took a strong bid after Aus retail sales data came in

much lower than anticipated, matching a pace last seen in March 2013, this data

supports the RBA's 'on-hold' stance on monetary police announced earlier this

week keeping the target cash rate unchanged at 1.50%. The 3-Year contract saw a

4 tick ascent post data, currently up 2 ticks on the SFE last at 97.860, the

10-Year contract saw a 3 tick rise post retail sales release and was last up 2

ticks at 97.185.

- On SYCOM the 10-Year benchmark contract tracked Tsy's, blipping higher on the

NY open as Tsy's tilted to buying after Tuesday's gains, the market then

digested the +135,000 Sept. ADP private payrolls report. The 3-Year was less

sensitive to movements in U.S Tsy's on SYCOM.

- Post data, sources reported large block sales, those being... YMZ7 paid 97.85

and 86 on 12k (high tick up to 97.87,) 2.5k IRH8 given at 98.18 and 10k YMZ7

bought at 97.87.

- Yields are down across the curve, more taken on the short end. 3-Year down

2.7bp and the 10-Year down 2.2bp.