Futures finished just shy of session...>

AUSSIE BONDS: Futures finished just shy of session highs as the lead contracts

registered fresh YtD highs, supported by broader risk aversion in play during

the session. 3-/10-Year cash differential 1.5bp flatter at 52.5bp, with the

XM/YM spread at 51.5, a touch steeper on the day.

- Buyers noted again in the IB space today following yesterday's soft GDP data

as economists sound more cautious on the prospect of RBA hikes/push back hiking

expectations. Market pricing a 55% chance of the Bank staying on hold through

2019, with some marginal probabilities of a cut creeping into the OIS space.

Notable activity in IBK9 after a >5.0K lift at 98.520, with the '19 IB contracts

settling at 98.505 or above.

- Bill strip flatter, front end under some modest pressure, whites and reds

settled 2 ticks lower to 5 ticks higher, extending recent flattening, with flow

skewed that way during the session. 3-Month BBSW fixed 1.0bp higher today, after

3-Month USD LIBOR jumped ~2.7bp Wednesday. 57-day repo ops conducted at 2.06%,

with year-end funding in focus.

- Eyes on an address from RBA Deputy Gov. Debelle in the London morning.