The space has moved higher during......>

AUSSIE BONDS: The space has moved higher during SFE hours, after the domestic

headline CPI release marginally missed exp., although the core inflation

measures provided modest beats.

- 3-Year Bond futures last trade at 97.725 (+3.5 ticks) while 10-Year Bond

futures last trade at 97.145 (+2.5 ticks), with both contracts half a tick from

best levels.

- The domestic 3-/10-Year yield differential last trades 0.7bp steeper at 59.6bp

(after a brief look above 60bp), while the AU/US 10-Year yield spread sits 1.9bp

wider at -12.8bp as Aussie Bonds outperformed in the wake of the domestic CPI

print.

- 3-Month BBSW fixed 1bp lower today today, with the white & red Bill contracts

last trading unchanged to 3 ticks higher, reversing the early session losses.

- RBA Assistant Gov. Kent made an address in early dealing, but offered little

new, reiterating the RBA's strap line, in that the next move in the cash rate is

likely to be up, while he stressed that the central bank is in no rush to change

its benchmark rate.