The space has continued to edge........>

AUSSIE BONDS: The space has continued to edge higher as worries surrounding

Syria have put a base on fixed income for now after yesterday's risk on flows.

- 3-Year bond futures last trade at 97.815 (-0.5 tick) while 10-Year Bond

futures last trade at 97.305 (+2.0 ticks).

- The domestic 3-/10-Year yield differential trades at 52.9bp (-1.8bp), as the

long end of the curve outperforms. The AU/US 10-Year yield spread last trades at

-11.2bp (-0.8bp).

- The auction of a 10-Year basket bond was well absorbed by the market, as the

supply produced solid enough results.

- 3-Month BBSW fixed 0.5bp higher today, although the uptick in bonds has led to

Bills moving away from session lows. IRM8 is a tick lower, with the remainder of

the white and red contracts unchanged to a tick higher.

- RBA Gov. Lowe is due to speak later today, in front of the RBA's Financial

Stability Review due on Friday.