The 3-Year Aussie Bond was last up 2...>

AUSSIE BONDS: The 3-Year Aussie Bond was last up 2 ticks at 97.900 and the

10-Year contract was last up 4 ticks at 97.2450 rallying to levels last seen mid

September taking a bid alongside Tsys overnight. 

- Yields are lower, outperforming on the superlong and long end following

yesterday's 30-Year syndication, at face value the issue was worth A$2.1bln and

took A$4.5bln bids at the final clearing price compared to a year ago when the

line was first issued which was worth $7.6bln with bids amounting to A$13.8bln.

- Yesterday also saw more dovish comments from the RBA, they said the timing of

changes in rates domestically will be dependent on changes in domestic

conditions and today saw Australia's Leading Index pointing towards below trend

growth for the second straight month. MNI says 'The leading index suggests the

Reserve Bank of Australia's growth forecasts for the economy in the August

Statement on Monetary Policy are on the optimistic side. The RBA's forecast

suggests above-trend growth of 3.25% in 2018 whereas Westpac's forecast is 2.5%

-- which is below the estimated trend rate of 2.75%, according to Westpac.'

- The curve has steepened on the session the 3-/10-Year spread last at 2.2bp.