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

AUSSIE BONDS: Both the 3-Year and the 10-Year contracts have wound down a couple

of ticks after large month-end extensions (larger than normal) in long dated

Aussie bonds bolstered both contracts taking them to October highs into the

overnight session, sources reported 13k Aussie 10-Years were traded in the final

minute of Tuesday's SFE, 30.5's lift nearly 10k times. The 3-Year contract was

last at 97.6 and the 10-Year was last at 97.2700.

- 10-Year bond auction results were strong, cover coming in at 5.2967x from

4.5572x prior  on the same maturity, demand this week for Aussie bonds has been

extremely high despite the premium compared to Tsys being half of what it was in

September. Latest data for Australia's CPI inflation caused market pundits to

slash the possibility of a rate hike this year from the RBA, CBA say: "The RBA

are on hold, but not forever. The next move is a hike, in 18." AiG Manufacturing

PMI reported at 55.5 from 53.8. Aus October Commodity Index figures in at

0530BST/1630AEST.

- Yields are down across the curve as rising global yields put pressure on the

Aussie yield curve, the 3-Year down 2.9bp and the 10-Year down 3.9bp.