The space continued to trade around....>

AUSSIE BONDS: The space continued to trade around recent highs in terms of

price, with 3-Year futures at 97.935 (+0.5 ticks) and 10-Year futures at 97.255

(+2 ticks).

- 3-Year yields printed at 2.042% last (-0.2bp) while 10-Year paper yielded

2.757% at the close (-2.0bp), which left the domestic 3-/10-Year differential

flatter at 70.8bp.

- The AU/US 10-Year spread traded at a deeper discount, last printing at 10.3bp

(-0.2bp).

- The space shrugged off the auction of a 2040 I/L bond, although demand for

inflation protection dipped, this was likely a product of the RBA continually

presenting a glass half empty view on inflation.

- The short end traded in a contained manner with the white bill contracts

unchanged to a tick lower.

- Swappable A$ issuance was once again noted as Lloyds notified us of fresh

7-Year paper.