Bonds have moved back from session.....>

AUSSIE BONDS: Bonds have moved back from session highs with 3-Year Bond futures

last trading 1.5 ticks lower at 97.765, while 10-Year Bond futures trade 4.0

ticks softer at 97.190.

- The space moved to session highs after Fitch affirmed Australia at 'AAA';

outlook stable & the Wash. Post reported that US Special Counsel Mueller raised

the possibility of a presidential subpoena in a tense meeting with Trump's legal

team. An auction of the longest AOFM bond on offer passed smoothly. Tsys have

since eased, helping Aussie Bonds lower, with China's Caixin M'fing PMI

providing a modest beat.

- RBA Gov Lowe spoke in EU hours on Tuesday, and stayed on message, offering

little new.

- The domestic 3-/10-Year yield differential is 3.3bp steeper at 60.3bp, while

the AU/US 10-Year spread has narrowed by 2.2bp to -18.1bp.

- The white & red Bill contracts are unchanged to a tick lower, tracking Bonds

after garnering support from a 1bp fall in the 3-Month BBSW fixing.