Aussie Bonds were also dragged.........>

AUSSIE BONDS: Aussie Bonds were also dragged higher in the wake of the

contractionary Caixin Chinese manufacturing PMI reading, although 3- & 10-Year

bond futures failed to pierce the early session highs that came about on follow

through from Monday's U.S. Tsy trade. YMH9 last 2.0 ticks higher at 98.220.

10-Year futures trade 3.5 ticks higher at 97.715. YM/XM last 1.5 flatter at

51.00.

- 10-Year Bond yields have hit the lowest level since November 2016.

- No reaction to the latest soft CoreLogic house price release.

- Worth noting that South Australia Gov't Financing Agency stated that it has no

intention of "accessing term markets during Jan."

- Bills trade 1-4 ticks higher through the whites and reds, flatter on the day.

RBA reverse repo rates easing with A$658mn worth of 23-Day ops dealt at 2.004% &

A$1.623 worth of 89-Day ops dealt at 2.082%, rates scaling back as year-end

effect falls out.