Aussie Bonds went out around session...>

AUSSIE BONDS: Aussie Bonds went out around session highs, with 3-Year Bond

futures at 97.895 (+5.5 ticks), while 10-Year Bond futures trade at 97.395 (+6.5

ticks).

- The bid eased around halfway through the session as fixed income assets on the

back of North Korea stressing that it was willing to work towards

de-nuclearisation & willing to sit down with the US, although the pullback in

Aussie Bonds was extremely limited, and fresh highs were made later on.

- The auction of a 10-Year basket bond was well digested, despite a downtick in

the cover ratio, with the Benchmark 10-Year yield moving below 2.60%.

- The domestic 3-/10-Year yield differential is 0.3bp steeper at 56.1bp, while

the AU/US 10-Year yield differential is 0.5bp tighter at -19.1bp.

- IRM8 had been pressured by the move higher in today's 3-Month BBSW fix, before

the Bill strip printed fresh highs alongside Bonds, with the white and red

contracts 2 to 6 ticks higher.