The broader risk off flows have........>

AUSSIE BONDS: The broader risk off flows have underpinned Aussie Bonds, with

futures trading at highs as we head towards the close.

- The domestic 3-/10-Year cash yield differential trades ~0.5bp flatter at

~64bp, while the AU/U.S. 10-Year yield spread continues to hover around 50bp.

- RBA Dep. Gov. Debelle spoke earlier, covering IBOR & BBSW, with little in the

way of market moving discussion.

- Victoria priced the re-offer of A$2bn worth of its October 2021 Bond at +20bp,

while on the corporate front NWB priced A$260mn of its May 2029 Bond at 52bp

over swaps.

- Bills trade 1 to 3 ticks higher last, in sympathy with Bonds, albeit on

limited volume, also drawing support from the 3-Month BBSW fixing, which set

~0.45bp lower today. Conversely, today's 72-day repo op from the RBA (which

covers year-end) saw rates hit month-to-date highs.