Bond futures operate off SYCOM highs...>

AUSSIE BONDS: Bond futures operate off SYCOM highs after largely tracking Tsys

overnight. As a reminder, Wednesday's SFE session saw price action dictated by a

dovish RBNZ statement and soft Chinese industrial profits data.

- YM last +3.0 ticks with XM +5.0 ticks. YM/XM trades at 41.0, with the cash

equivalent at 35.9bp. The AU/U.S. 10-Year yield spread trades at -62.9bp.

- Bills trade 1-3 ticks higher through the reds. Early paying interested noted

in IBJ9 today. RBA repo operations saw A$630mn worth of 18-day ops dealt at an

average of 2.035%, with A$1.16bn worth of 54-day ops dealt at an average of

1.981%.

- Focus today falls on vacancies data, a measure closely watched by the RBA,

which will no doubt receive increased scrutiny over the coming months, with the

RBA placing its faith in the health of the labour market.