The Aussie bond space took its lead....>

AUSSIE BONDS: The Aussie bond space took its lead from US rates, with the Aussie

10-Year future closing down 1.5 ticks at 97.105, with cash yielding 2.901%

(+1.4bp), while the 3-Year future closed 2.5 ticks lower at 97.820, with cash

yielding 2.144% (+2.5bp) as the domestic 3/10-Year yield spread narrowed to

75bp.

- The market ignored the minutes from the RBA's most recent meeting which

reiterated the RBA's view that inflation is set to increase at a modest pace,

with Westpac noting that the release offered no surprises, but was a little more

confident about the consumer.

- Elsewhere RBA Asst. Gov Bullock warned against the increased levels of debt in

the Australian economy, but her comments had no impact on the rates space.

- When all was said & done today's events had little impact on the short end

with the white bill contracts trading 1-2 ticks lower at the close.

- Focus now moves to a deluge of Fedspeak, as well as US debt supply.