Aussie futures continued to trade......>

AUSSIE BONDS: Aussie futures continued to trade heavy overnight, with a mix of

CTAs and stops going through, as YM broke key support levels late in the US

sesson after initially holding a lower range, closing at the lows. 

- The hedging of yesterday's November 2029 (A$9.6bln issued at +7 EFP) also

contributed to the weakness, as AUD/USD broke through 0.80, pointing to solid

offshore demand. One MNI sources notes the sell-off warrants caution, but still

feels that current levels provide attractive levels to scale into longs, with

1y1y the sweet spot, providing the best roll-down. Corporate issuance remains

heavy, overnight Westpac issued 2.5bn across 3yrs and 10yrs.

- Aussie Dec employment data due today (0030GMT/1130AEDT) where market is

looking for another gain after a monster 61k jobs growth in November. Median

Expectations are for a 15k rise and for the unemployment rate to stay at 5.4%.