The impending ECB & BoJ Monetary.......>

AUSSIE BONDS: The impending ECB & BoJ Monetary policy decision kept a lid on

activity in rates markets overnight although Aussie bonds managed to finish the

SFE off of worst levels. 3-Year futures finished the session at 97.895 (-0.5

tick), while 10-Year futures traded at 97.210 (-1.0 tick) at the close of play.

- Fixed income came under pressure in late US dealing as the White House

revealed it was considering a carve out of NAFTA partners from the proposed

metals tariffs, with one report suggesting such an announcement could come as

soon as today.

- The domestic 3-/10-Year yield differential has narrowed by 1.1bp to 72.0bp,

while the AU/US 10-Year spread hovers around -7bp.

- BBSW fixed higher again today, rising 1.5bp, which weighed on the short end as

the IRH8 contract finished 3 ticks lower at 98.120, while the remainder of the

white Bill contracts were unchanged to a tick lower (IRM8 is now trading higher

than IRH8).