The space has consolidated higher in...>

AUSSIE BONDS: The space has consolidated higher in the second half of the

session, following the broader based risk off flows evident in early dealing.

- 3-Year Bond futures finished at 97.840 (+6.0 ticks), while 10-Year Bond

futures closed at 97.340 (+5.5 ticks).

- The domestic curve has continued to grind flatter, with the 3-/10-Year yield

differential last 3.0bp flatter at 55.9bp, while the AU/US 10-Year spread has

narrowed to -15.5bp.

- 3-Month BBSW fixed 1bp higher again today as repo rates jumped, which lead to

underperformance for IRM8 early on, although the overriding driver of the Bill

strip has been the movement in underlying bonds, the white-red contacts closed

just off of highs in the main, with the white contracts 1-3 ticks higher.