It has been a relatively limited.......>

AUSSIE BONDS: It has been a relatively limited start for the space, although

outright Bond futures have made fresh lows after they tracked global paper lower

on SYCOM, aided by comments from ECB President Draghi.

- The domestic curve has steepened a touch as the long end underperforms, with

10-Year yields hitting the highest level observed since June, allowing the

domestic 3-/10-Year yield differential to trade at ~61.5bp last, back from the

early highs, while the AU/U.S. 10-Year yield spread has come back in to

~-34.5bp. XMZ8 has registered a contract low on the move.

- 3-Month BBSW fixed some 0.9bp higher today, with funding markets generating

interest heading into quarter end. The Bill strip last deals unchanged to 4

ticks lower.

- Traders have spoken about a ~10.5K buyer of IBF9 in the overnight session.

Most traders have suggested that this is merely a hedge, but some traders have

suggested that this is a cheap play on the possibility of the RBA delivering a

rate cut in December.