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Both Aussie bond benchmark contracts...>

AUSSIE BONDS
AUSSIE BONDS: Both Aussie bond benchmark contracts opened SFE higher after a
well bid SYCOM session, the 3-Year contract was last flat at 97.850 after
peaking to its highest level this week on SFE to 97.870, the 10-Year was last
flat at 97.170 after also peaking at its highest level on SFE this week to
97.200. The contracts both began to come down after some large sales made in
TYZ7 and YMZ7.
- The bid at the start of the session was runoff from the overnight where Aussie
bonds moved higher with Tsy's, investors sought safe-havens in the afternoon
amid afternoon safe-haven buying on Iran, N. Korea worries. USGSG could not
confirm if N. Korea earthquake was manmade or not and President Trump announces
plan for Iran Friday 12:45pm ET.
- Next week we look to Tuesday's RBA minutes where analysts at RBC have said
they expect to hear more detail on the RBA's thinking on business investment and
conditions as the non-mining capex outlook improves. Thursday we have labour
data which last month came out strong.
- Yields are mixed across the curve the 3-/10-Year spread at 1bp.

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