The space has operated around the......>

AUSSIE BONDS: The space has operated around the closing SYCOM levels in the

early part of the SFE session, with 3-Year Bond futures last trading at 97.725

(-0.5 tick), with 10-Year Bond futures at 97.170 (-3.5 ticks).

- The move has resulted in a steeper domestic curve, with the 3-10 Year yield

differential last 3.6bp steeper at 57.5bp, while the AU/US 10-Year yield spread

is 0.8p wider at -10.1bp.

- The auction of the shortest 10-Year Bond future basket constituent passed

smoothly, with the line registering yet another extremely strong bid-to-cover

ratio at the auction, which is unusual for the shortest 10-Year basket bond,

pointing to persistent demand for the line.

- 3-Month BBSW fixed 0.5bp lower today, with the Bill strip off of session lows,

although they do trade mixed, albeit mostly unchanged to higher.