Bond futures edged higher on SYCOM,....>

AUSSIE BONDS: Bond futures edged higher on SYCOM, in sympathy with Tsys, as soft

Eurozone data and cautious Fed rhetoric supported the core FI space on Tuesday.

- YM last trades 1.5 tick higher on the day, with XM +1.0 tick. YM/XM deals at

45.00, with the cash equivalent at 45.1bp.

- Bills trade unchanged to 2 ticks higher through the reds, with 3-Month BBSW

setting ~2bp lower again today, while A$320mn worth of 13-Day RBA repo ops were

dealt at an average of 1.875%, with A$2.25bn worth of 70-Day ops dealt at an

average 2.033%, reiterating the fact that turn premium is still evident.

- Q4 wage data headlines the Australian docket today, with the RBA clinging to

the idea that a tighter labour market will result in a gradual uptick in wages.

- Also worth highlighting that S&P pointed to Australian prime home loan

delinquencies rising in December, as 90-plus days arrears hit a record high. The

agency expects refinancing pressures to remain evident.