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 a little over 2bp steeper just

shy of ~58.8bp on the back of the long end's underperformance, while the AU/U.S.

10-Year yield differential has moved back out to -27.5bp as AU bonds outperform

Tsys.

- Looking at the short end, the Bill strip is 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.