Sideways trade in thin volumes for.....>

AUSSIE BONDS: Sideways trade in thin volumes for Aussie bonds after initial move

higher at the start of Asia-Pac trade. Japanese markets on holiday is keeping

trade subdued and news flow has been thin. 

- 3-Year future last down 1 tick at 97.885, 10-Year future last down 0.5 ticks

at 97.355. Yields marginally higher, 3-Year up 0.8bp, 10-Year up 1.3bp.

3/10-Year spread last at 56.8bp as the curve reverses earlier flattening move to

steepen slightly on the session. Some real money selling interest late in the

session pushing the long end lower 

- ASX 200 is slightly higher, a bid late in the session took bonds slightly

lower into the close. ASX 200 is still near the highest level in 10 years

tracking US stocks higher. 

- Some chatter in the market that the AOFM could announce a long end syndicated

deal later this week is weighing on longer dated issues. AOFM announced before

the Christmas holiday plans for a new Nov 2029 bond via syndication and

indicated further syndicated taps of other issues are planned.