Bonds operate near their closing.......>

AUSSIE BONDS: Bonds operate near their closing SYCOM levels, supported by risk

off flows. 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."

- 3-Year Bond futures last trade at 97.785 (+2.0 ticks), while 10-Year bond

futures trade at 97.190 (+4.0 ticks). The domestic 3-/10-Year yield differential

sits 1.9bp flatter at 62.3bp, 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 a tick lower to 2 ticks higher, with selling interest

noted in IRU8. RBA Gov Lowe. delivered little on the MonPol front on Wednesday,

choosing to focus on the strained US-China relations, in keeping with the nature

of the meeting he attended.