Bond futures have traded in a tight....>

AUSSIE BONDS: Bond futures have traded in a tight range over the last couple of

hours, after they pulled back from best levels as YM & XM ran out of steam

at/just above their respective Wednesday highs, with T-Notes also struggling to

extend above yesterday's high.

- YM & XM both trade 1.0 tick higher, with YM/XM at 50.0 and the cash equivalent

at 48.5bp. The AU/U.S. 10-Year yield spread trades at -45.0bp.

- Bills sit off of best levels, last trading unchanged to 1 tick higher across

the whites and reds.

- AU credit data was a little softer than expected, with the internals revealing

the lowest housing investor growth on record.

- Tweets from a Newscorp reporter highlighted that ING Australia hiked home loan

variable rates by 0.15 percentage points for new and existing customers.

Effective Thursday February 7 (they are a large second tier lender in Aus, this

isn't their first out of cycle hike).

- The space had little reaction to the latest round of official Chinese PMI

data.