The emergence of a large seller in.....>

AUSSIE BONDS: The emergence of a large seller in 3-Year Bond futures shortly

after the open pressured the space, with the uptick in US Tsy yields adding

further weight. Bond futures trade just off of worst levels.

- There has been little in the way of fresh catalysts for the move, which looks

to be more of a case of risk on sentiment spilling over into the Asia-Pacific

time zone.

- The domestic cash 3-/10-Year yield differential has steepened as the long

end's sell off has outpaced shorter dated paper, with the spread back above

60.0bp. The AU/US 10-Year yield spread has narrowed over the last 24 hours, and

sits at -14.0bp.

- 3-Month BBSW fixed some 1.15bp higher today, with the liquid white and red

bill contracts last trading unchanged to 4 ticks lower.