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

AUSSIE BONDS: Bond futures have traded in a tight range over the last few 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 near enough unchanged, with YM/XM at

50.0 and the cash equivalent at 48.5bp. The AU/U.S. 10-Year yield spread trades

at -44.3bp. Bills sit off of best levels, last trading 1 tick lower to 1 tick

higher across the whites and reds. Today's RBA repo ops saw A$490mn worth of

19-Day ops dealt at 2.017%, while A$1.57bn worth of 71-Day ops were dealt at

2.061%, as rates creep higher again.

- 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 official Chinese PMI data.