The domestic 3-/10-Year yield..........>

AUSSIE BONDS: The domestic 3-/10-Year yield differential followed the flatter

theme in US Tsys, last dealing around ~56.5bp, while local Bonds outperformance

vs US Tsys abated a touch in the second half of the session, although they

largely mimicked Tsys.

- Aussie Bonds were initially dragged higher as US T-Note futures broke

Thursday's highs, underpinned by media reports noting that the US is ready to

slap tariffs on $50bln worth of Chinese goods, while this isn't particularly new

it was enough to weigh on risk appetite, particularly when coupled with WSJ

reports suggesting that China is ready to retaliate to the tariffs. Although the

space is back from best levels, tracking Tsys.

- Moody's affirmed Australia's Aaa credit rating & maintained its stable outlook

after hours on Thursday.

- RBA's Ellis offered little new ahead of next week's RBA MonPol decision

minutes & a speech from RBA Gov Lowe.

- 3-Month BBSW fixed ~0.9bp lower today, representing the first fix lower since

May 25. The white and red Bill contracts last trade virtually unchanged.