The space has moved away from the......>

AUSSIE BONDS: The space has moved away from the early session lows 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 97.810 (-1.0 tick) while 10-Year Bond

futures last trade at 97.295 (+1.0 tick).

- The domestic 3-/10-Year yield differential trades at 53.4bp (-1.3bp). It is

worth noting that the US curve flattened on Tuesday. The AU/US 10-Year yield

spread last trades at -10.8bp (-0.4bp).

- 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, with the white and red Bill contracts

unchanged to 2 ticks lower on the session thus far.

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

Stability Review due on Friday.