Futures have stuck to a tight range,...>

AUSSIE BONDS: Futures have stuck to a tight range, brushing off comments from

RBA Dep. Gov Debelle, as he suggested that unemployment may fall further than it

has done in previous instances before wages pick up. Debelle then participated

in a Q&A, with BBG covering the comments, reiterating that the "RBA is paying

close attention to falling house prices," stressing that the "drag on the

economy from lower house prices is still somewhat unclear."

- The domestic 3-/10-Year cash yield differential continues to hover just above

65bp, while the AU/U.S. 10-Year yield spread also operates in familiar territory

at ~-46.5bp. The latest AOFM auction of the 2.75% 21 November 2029 Bond was

average, and fairly non-descript.

- CAF launched a 5-Year A$ Bond, as overseas players remain active in issuance.

- 3-Month BBSW fixed ~0.5bp lower for a second consecutive day, in spite of the

continued squeeze higher in repo rates (fresh month-to-date highs were logged

again today). The Bill strip last deals unchanged to 1 tick higher on low

volume.

- Participants focus on tomorrow's AU labour market report.