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

AUSSIE BONDS: Both the 3-Year and the 10-Year benchmark contracts have been very

quiet on today's SFE despite lots of Aussie data out, home loans up by 1% from

2.9% prior and surveyed at 0.5% for example as well as credit card purchases

coming in up to A$26.9bln from A$25.6bln. Sources attribute the lull to the RBA

and their recent dovish/dull announcements, "the RBA have done very little and

probably will do very little, the country is so highly leveraged they can't

raise rates." Much to our sources dismay, the 3-Year contract was last flat on

SFE at 97.840 and the 10-Year was last down 1 tick at 97.145.

- On SYCOM the 3-Year lay almost flat in very thin volumes and the 10-Year only

took a slight bid alongside Tsys on the NY open which was attributed to early

FX-tied black box buys with weak USD.

- Yields up but only very slightly, Sources said "the curve is super flat."