The 3-Year Aussie future saw...........>

AUSSIE BONDS: The 3-Year Aussie future saw extremely thin volumes during SYCOM,

both benchmark contracts remained steady throughout the session seeing a small

dip and bounce alongside U.S. Tsys following slightly hawkish remarks from Fed

Yellen who said inflation uncertainties call for gradual rate moves but hiking

too slowly risks an overheated labour market. As investors retreated away from

safe haven assets Tsy's ended the overnight session weaker, as did the Aussie 3

and 10-Years. Coming into SFE the two benchmarks came up by 2 ticks, but

following buyback announcements from the AOFM of A$700mln and then auction

results coming in at higher yields than previously on the same line the 3-Year

last flat at 97.830 and the 10-Year last down 2 ticks at 97.800.

- All Aussie Bonds yields are up, the 3-Year up 0.3bp, the 10-Year up 1.6bp

making the spread slightly wide at 1.3bp with the curve steepening.

- No domestic data today, looking to Aug job vacancy figures coming in tomorrow

at 0230 London, 1100 Sydney as well as a talk from RBA Debelle in London 1000BST

London 1900 Sydney