The space has moved higher with........>

AUSSIE BONDS: The space has moved higher with 3-Year Bond futures last trading

at 97.895 (+4.0 ticks), while 10-Year Bond futures last trade at 97.255 (5.25

ticks).

- The domestic 3-/10-Year yield differential last trades at 67.2 bp, marginally

steeper on the day, while the AU/US 10-Year yield spread has widened by around

1.5bp at ~-9.0bp.

- The US Tsy curve's bull flattening supported Aussie Bonds on SYCOM, as US Sec.

of State Tillerson was fired, US CPI came in inline with exp. & US 30-Year paper

was well received at auction.

- In early SFE dealing comments from RBA's Kent reiterated that a rate hike will

not come any time soon, however, he did note that when a hike comes it doesn't

necessarily have to be in 25bps increments, which has supported the space as it

suggests that future tightening may be more gradual. Kent also highlighted that

markets may be under pricing the risk of faster global growth.

- 3-month BBSW fixed 1bps higher today, weighing on IRM8, last 1 tick lower,

while the remainder of the white & red Bill contracts trade unch.-+2 ticks.