Futures pressing on to fresh session...>

AUSSIE BONDS: Futures pressing on to fresh session highs, just short of YtD

highs for the lead contracts, with broader risk aversion in play. 3-/10-Year

cash differential little changed at 54.7bp, with the XM/YM spread at 52.5, 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 50% chance of the Bank staying on hold through

2019. Notable activity in IBK9 after a >5.0K lift at 98.520, with contracts out

to October '19 bid above 98.50 at writing.

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

trade 2 ticks lower to 4 ticks higher last, extending recent flattening. 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.