The space has moved higher on the......>

AUSSIE BONDS: The space has moved higher on the back of the soft Australian

labour market report, whereby the headline & the participation rate missed

expectations, with the modest rise in the number employed attributable to part

time jobs growth, as the number of full time workers fell. The prior headline

figure was revised lower, to -6.3K from +17.5K.

- Aussie Bonds have moved higher in the wake of the release, with the 3-Year

future last trading at 97.735 (-0.5 tick), while 10-Year Bond futures last trade

at 97.210 (-3.0 ticks).

- The domestic 3-10 Year yield differential last trades 2.8bp steeper at 54.0bp,

while the AU/US 10-Year spread trades at -8.9bp (unch.)

- 3-Month BBSW fixed unch. today. The Bill strip has also moved higher in the

wake of the labour market report, with the white contracts 1 to 3 ticks lower,

as the red contracts outperform the front end of the strip and last trade unch.

- Swap spreads are running tighter in the main.

- Focus now moves to next week's domestic CPI data.