Bond futures have followed safe........>

AUSSIE BONDS: Bond futures have followed safe haven assets higher, with 3-Year

bond futures last at 97.905 (+2.0 ticks), with 10-Year futures at 97.215 (+2.0

ticks).

- The domestic 3-/10-Year yield differential has flattened by around 1.0bp, last

at 71.1bp, while the AU/US 10-Year bond spread has moved back out to -9.1bp

(-2.9bp).

- Bill contracts are higher from Z8 back, although H8 remains pressured by the

BBSW fixing, which rose by another 2bp today.

- Earlier comments from RBA Gov Lowe offered little fresh on the MonPol front as

he noted that the next move in rates will likely be up & reiterated the

strapline on growth from yesterday's statement.

- Lowe did suggest that today's Q4 GDP release may be softer than the RBA exp.

owing to exports.

- 10-Year basket supply is due in 10 minutes.