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

AUSSIE BONDS: Bond futures moved higher on SYCOM, as risk off flows supported,

but have ticked away from their opening highs in early Thursday trade. YMZ8 has

failed above 97.95 again, lacking follow through after a brief look above, with

recent highs/Fibonacci resistance in play in the region.

- Swaps have lagged ACGB's, allowing spreads to widen.

- The long end has outperformed on the latest rally, leaving the domestic

3-/10-Year cash yield spread at 60.8bp last.

- The Bill strip last deals 1 tick softer to 6 ticks higher, with the front end

underperforming.

- Fitch recently affirmed Australia's AAA credit rating; outlook stable, while

Australia has reported an underlying cash deficit of A$10.5bn in the year to the

end of Sep.