Bonds extended on their SYCOM highs....>

AUSSIE BONDS: Bonds extended on their SYCOM highs as they closely tracked Tsys

amid risk off flow, but sit off of best levels. Questions re: the US-North Korea

summit continue to do the rounds, with a North Korean foreign min representative

noting that he will suggest reconsidering the summit, although he did say that

the future of the summit is entirely down to Washington. Elsewhere trade war

issues headline, with US President Trump instructing Commerce Secretary Ross "to

consider initiating a Section 232 investigation into imports of automobiles,

including trucks, and automotive parts to determine their effects on America's

national security." Ross has obliged.

- 3-Year Bond futures last trade at 97.780 (+1.5 ticks), while 10-Year bond

futures trade at 97.195 (+4.5 ticks). The domestic 3-/10-Year yield differential

sits 2.5bp flatter at 61.7bp, while the AU/US 10-Year yield differential trades

1.1bp tighter at -18.8bp.

- 3 month BBSW fixed 0.59bp lower today. The white & red Bill contracts last

trade 2 ticks lower to 2 ticks higher, in what has been a fairly active session

for the strip.