Bond futures closed just off of........>

AUSSIE BONDS: Bond futures closed just off of their best levels as both 3- &

10-Year futures managed to post fresh month-to-date highs as buy side flow, a

tick up in US Treasuries & a solid 10-year auction helped the space higher in

early dealing this week.

- 3-Year futures were up 3 ticks at 97.93 with 10-Year futures up 7 ticks at

97.235, as their respective yields last sat at 2.046% (-2.5bp) & 2.777$ (-7.1bp)

- The AU/US 10-Year spread remains firmly entrenched in negative territory, last

at -8.1bp, while the domestic 3-/10-Year curve flattened by over 4bp on the day,

with the yield differential last sitting at 72.7bp.

- The short end tracked the moves seen in the bond space, with the white bill

contracts flat to 2 ticks higher than settlement.

- Looking forwards to the rest of the week, domestic supply, the testimony from

Fed Chair Powell to Congress & private capex data will likely provide the most

interest.