It has been a relatively quiet start...>

AUSSIE BONDS: It has been a relatively quiet start for Bond futures, after the

space followed Tsys higher on SYCOM, with the domestic 3-/10-Year cash yield

differential flattening by ~1.5bp in early dealing to 63bp.

- On the semi-gov't front Victoria has mandated banks for 3-Year fixed rate bond

issuance. 

- Shorter dated Bill contracts have underperformed, last dealing unchanged to 3

ticks lower, with the reds 1 to 3 ticks higher last. Similar moves were observed

in the U.S. Eurodollar strip on Thursday, as the front end was pressured by a

higher 3-Month $ LIBOR fix.

- It is worth noting that were will be some notable redemptions in the space on

Monday.