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

AUSSIE BONDS: The space has moved back from the opening lows, with 10 year

futures now 1.5 ticks lower at 97.130 and their 3-year counterparts unchanged at

97.855, with their cash equivalents yielding 2.880% (+1.8bp) & 2.115% (+0.2bp)

respectively.

- The move away from lows has been aided by an ever so modest downtick in US

yields at the start of the Asia-Pac session, with the US 10-Year last at 2.941%,

after we briefly touched above 2.95% in lieu of the release of the latest FOMC

meeting minutes.

- The overnight move in US Tsys has allowed the AU/US 10-Year spread to move

further in to negative territory, last sitting at -6.2bp (-3.8bp thus far),

while the domestic AU 3-10 Year curve sits in the mid 70's, within its recent

range.

- The short end has also edged away from lows, with the white bill contracts

last a tick softer across the board.