Both the 3-Year and 10-Year............>

AUSSIE BONDS: Both the 3-Year and 10-Year contracts opened lower on SFE then

took a bid alongside Tsy's and dipped after PPI came in positive but by less

than prior. Sources said large trades took Tsy's bid after Fed chair contender

John Taylor spoke in Wisconsin, making comments that would be welcomed by the

White House. He argued that U.S. growth acceleration is possible if policy

makers encourage investment and hiring, he said "tax rates matter," which will

sit well with President. Trump after his recent tax reform proposal.

- The 3-Year contract was last at 97.930 and the 10-Year was last at 97.200.

- Both benchmarks moved with Tsy's on the overnight which dipped after a painful

7-year bond auction, results showed a bid/cover at a 14 month low and then also

the ECB meeting news that Jan-Sept 2018 ECB bond-buys will be halved to E30B/mo

pace didn't help Tsy's positioning.

- Aus domestic data to look to in the week ahead would be RPI, of which RBC say,

"We see a limited monthly bounce in September turnover to 0.2% growth on the

back of some positive lead indications from consumer sentiment, which picked up

in September and October readings despite higher utility and fuel prices."