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 subsequent uptick in US Tsy

yields/spill over in risk-on sentiment adding further weight. An ever-so

slightly softer than expected AU trade print, coupled with a pullback in AUDJPY

and subsequently AUDUSD, has put a base on the space for the time being, with

Bond futures operating a couple of ticks back from lows.

- 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 active white and red

bill contracts last trading unchanged to 3 ticks lower after IRM8 rolled off the

board.