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

AUSSIE BONDS: Futures have 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).

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