The space has slowly ticked away.......>

AUSSIE BONDS: The space has slowly ticked away from the SYCOM highs, perhaps

aided by an uptick in mainland China stocks, as the CSI 300 added 1.0%, and

comments out of the White House made late Wednesday, which noted that China &

U.S. have had talks re: trade, with the U.S. open to further talks if China

address its longstanding concerns.

- The domestic 3-/10-Year yield differential continues to oscillate around 55bp,

while the AU/US 10-Year yield differential sticks to the low -20bp region.

- Bill strip activity has been light thus far, with the white and red contracts

virtually unchanged on the session. 3-Month BBSW fixed some 2.2bp lower today at

~2.02%, although AUD cross currency basis swaps remain elevated.

- Focus remains on the issuance of the new 21 May 2041 Bond due next week, and

dynamics in the funding space.