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

AUSSIE BONDS: The space has slowly ticked away from the SYCOM highs, aided by a

notable uptick in mainland China stocks, as the CSI 300 added 2.0%, 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 addresses 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 limited, 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.