On SFE the 3-Year remained.............>

AUSSIE BONDS: On SFE the 3-Year remained relatively steady, only moving within a

2 tick range and last at the same level it closed at on yesterday's Asia-Pac

session at 97.840. The 10 year has moved within a 3 tick range, last up 1 tick

on yesterday's Asia close, last at 97.1550. The 10-Year contract took a slight

bid rising 2.5 ticks on a flurry of block trades in U.S Tsys. Sources reported

"Feb/Mar IB Spread (IBG8/H8) trades a total of 1,870 times in the past 30 mins."

sovm au - Today the Australian Office of Financial Management (AOFM) issued

A$3.5bln short dated 2022's at a coupon of 2.25% (higher than the current 3-Year

yield of 2.121%,) the auction was the largest issue on record from the AOFM but

cover came in lower than the yearly average of 4.46x at 3.68x and with a record

number of bids. Despite sources reporting 8k of Aussie 3's lifted at 97.83 post

auction, the two benchmark contracts stood firm, a reminder this is a bear

market. 

- The yield curve is mixed across the curve, up on the short-end post auction

and down on the long-end, the 3-/10-Year spread steepened through the session

and was last at 1.5bp.