Bonds trade around SYCOM highs, with...>

AUSSIE BONDS: Bonds trade around SYCOM highs, with 3-Year Bond futures last at

97.855 (+0.5 ticks), while 10-Year futures last trade at 97.200 (+1.0 tick).

- 3 year cash bonds last yield 2.111% (-0.8bp) while 10-Year cash yields 2.806%

(-1.2bp), leaving the domestic 3-/10-Year yield differential at 68.8bp.

- The AU/US 10-Year bond spread last trades at -6.7bp, after US note auctions

were well digested in US hours.

- The latest domestic I/L supply was ignored by markets, although the cover

ratio was notably softer when compared to the prior auction of the line.

- The space also shrugged off the latest NAB business survey & housing finance

data.

- 3-Month BBSW fixed 1bp higher again today, which has weighed on the front end

of the Bill strip. IRM8 & IRU8 last trade a tick lower, while the remainder of

the white and red contracts trade unchanged to a tick higher.

- IRM8U8 saw 1.5K lots given at 4 around an hour ago.