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 97.250 rallying to levels last seen mid

September taking a bid alongside Tsys overnight as the U.S. Yield curve

flattened. 

- Aussie 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.

the 3-/10-Year spread last at 2.2bp.

- Yesterday saw dovish comments from the RBA, they said the timing of changes in

rates domestically will be dependent on changes in domestic conditions and today

Australia's Leading Index pointed towards below trend growth for the second

straight month. MNI said 'this suggests forecasts for the economy in the August

Statement on Monetary Policy are on the optimistic side.' 

- Tomorrow brings Aus labour data, long awaited for signs of any pick up in the

economy. It also bring the only Aussie auction of the week in 126-Day Bills.