Lead Bond futures have ticked lower....>

AUSSIE BONDS: Lead Bond futures have ticked lower in recent trade after they

struggled to follow through at/around contract highs on the early round of risk

off flows witnessed today.

- The YM/XM spread trades a touch flatter at 50.5, while the cash 3-/10-Year

yield differential trades ~1.7bp flatter at 51.3bp. Tsys have outperformed AU

paper on the latest leg higher, with the AU/U.S. 10-Year spread last ~40.5bp.

- Comments from the RBA's Kent hit early today. Kent noted that the Australian

economy is making some progress on unemployment and inflation but highlighted

that it is gradual. Kent also reiterated that the next move in the cash rate is

likely up but didn't rule out a cut if warranted. Kent also noted that there is

a risk that bank credit supply tightens unnecessarily and seemed worried that

banks have tightened loans to small firms.

- The white & red Bill contracts trade 1 tick lower to 1 tick higher at writing.

RBA conducted 65-day reverse repos at 2.082%, while 3-Month BBSW fixed 0.04bp

higher today.