The Aussie bond space was also.........>

AUSSIE BONDS: The Aussie bond space was also subjected to some steepening

pressure on the back of the moves seen in Tsys/broader risk appetite, with YM

-1.0 & XM -6.0 at typing, as the latter deals back from session lows after it

failed to test 99.00 (or 1.0% in implied yield terms).

- The RBA's June meeting minutes saw the board look to the shape of the yield

curve, noting that if the kink at the front end persists then it "would consider

purchasing bonds in the secondary market to ensure that short-term yields (1-2

Year) are consistent with the target for 3-year yields." Elsewhere, the release

was pretty much in line with expectations.

- The latest weekly payroll data from the ABS noted that total payroll jobs

increased by 1.0% through May. The ABS went on to note that "the latest data

showed that the total payroll job losses since mid-March were greatest in the

week ending 18 April (8.9%) and had recovered to a 7.5% loss by the end of May."

- Bills sit +1 to -1 through the reds, with the interbank overnight cash rate

fixing 0.1bp softer at the latest set (at 0.13%).