Bonds trade a tick or so back from.....>

AUSSIE BONDS: Bonds trade a tick or so back from session lows, with 3-Year

futures last at 97.890 (-3.5 ticks) & 10-Year futures at 97.210 (-6.0 ticks).

- The Aussie 3-/10-Year yield differential last trades 1.0bp steeper at 71.4bp,

with the benchmark Aussie 10-Year yield back above 2.80%, trading at 2.806%

(+6.2bp), while the AU/US 10-Year spread has narrowed to 8bp there or

thereabouts (+1.8bp).

- Sellers have been active in the front end of the bill strip, as focus is cast

over funding pressures; the bank bill fixing was 2.5bp higher today, 3/4 of the

big banks approach HY-end in March and repo rates grind higher. The white & red

bill contracts are 2-3 ticks lower as a result.

- The RBA decision in a little over 1 hour away is being viewed as a virtual

non-event, with many viewing the rhetoric surrounding the recent trade tariff

language out of the the US as the only area for any possible variation.