It has been a relatively lacklustre....>

AUSSIE BONDS: It has been a relatively lacklustre SFE session after Aussie Bonds

followed the global fixed income space lower on SYCOM in the wake of the U.S.-EU

trade talks, with the longer end underperforming on the move, as 10-Year futures

yesterday's gains.

- Bond futures have ticked slightly higher thus far on Thursday, although the

domestic 3-/10-Year yield differential still sits around 2bp steeper at ~58.5bp

on the back of the long end's underperformance, while the AU/U.S. 10-Year yield

differential has moved back out to -27.0bp as AU bonds outperform Tsys.

- Looking at the short end, the Bill strip is trading broadly unchanged after

3-Month BBSW fixed 0.1bp lower, while the short tenor repos in play today saw

rates drift lower.

- Traders now look to next week's Jun/Q2 retail sales release followed by the

RBA decision on 07 August, as well as the AOFM issuance schedule for next week.