Futures ticked away from lows in.......>

AUSSIE BONDS: Futures ticked away from lows in early dealing, with little in the

way of direct headline catalysts apparent. A degree of worry may have crept in

ahead of the China Caixin manufacturing PMI print, but the trepidation proved

unwarranted on the back of a slightly stronger than expected Chinese Caixin

manufacturing PMI release (even though the metric remained in contractionary

territory). The print allowed futures to move back from SFE session highs.

- The latest AOFM weekly issuance schedule held no surprises.

- YM last -3.5 ticks, with XM -4.0 ticks. YM/XM trades at 47.5, with the cash

equivalent at 48.3bp. The AU/U.S. 10-Year yield spread trade at -56.9bp.

- Bills are running unch.-4 ticks lower through the reds.