The Aussie bond space finished.........>

AUSSIE BONDS: The Aussie bond space finished higher on the day but off of best

levels, with 3-Year futures 2 ticks higher at 97.900 and 10-Year futures 2.5

ticks higher at 97.220.

- The domestic 3-/10-Year spread closed at 71.1bp while the AU/US 10-Year spread

closed at around -6.0bp.

- The space moved higher on news that Gary Cohn was stepping down as US NEC

Chair & that the US is considering applying trade tariffs on China. Bonds then

took a fresh leg higher on a decent enough auction of a 10-year futures basket

constituent (although the cover ratio moderated this time out) & soft domestic

GDP data, although the miss was flagged by RBA Gov. Lowe in an earlier address

(which offered little new on the MonPol front).

- Bonds back off of best levels, as risk assets moved away from session lows,

but the pullbacks were only modest.

- The short end edged higher on the day with the white Bill contracts up 1-2

ticks.