Futures have edged higher over the.....>

AUSSIE BONDS: Futures have edged higher over the last few minutes, with YM +0.5

& XM unch. on the day. YM/XM deals at 43.5, with the cash equivalent at 39.5bp.

The SYCOM session was limited and low volume.

- The recent uptick may be linked to the latest APRA announcement, which

required Macquarie, Rabobank & HSBC to tighten the intra-group funding

arrangements for their Australian operations. Following a review of funding

agreements across the ADI industry, The reporting of their intra-group funding

as stable has been in breach of the prudential liquidity standard [1]. APRA's

review found these banks were improperly reporting the stability of the funding

they received from other entities within the group. These banks had provisions

in their funding agreements that would potentially allow the group funding to be

withdrawn in a stress scenario.

- Decelerating rates of expansion in the flash CBA PMI readings were also noted.

- Bills trading 2-3 ticks higher through the reds, with volume in the front end

picking up over the past few minutes.

- Skilled vacancy data provides the highlight of the docket today.