The space has ticked higher............>

AUSSIE BONDS: The space has ticked higher alongside JGB's & JPY demand, with

3-Year futures last trading at 97.895 (+0.5 tick) & 10-Year futures at 97.295

(+2.0 ticks).

- A 10-Year bond basket constituent was well received at auction today which

would have also helped demand for the space.

- The domestic 3-/10-Year yield differential last sits at 66.7bp (-0.7bp) while

the AU/US 10-Year yield spread last sits at -14.1 bp (-4.0bp).

- 3-Month BBSW fixed 0.5bp higher today, after 3-Month US LIBOR fixed over 3.0bp

higher. The white and red Bill contracts trade 1-2 ticks higher on the day, as

today's fix lagged those seen earlier this week.

- From a technical perspective 10-Year futures are currently hesitating around

the 200-DMA with the 55-WMA and Bollinger top lurking above. Bulls continue to

look for a close above the 55-WMA to initially target 97.3850 and then 97.5200

Nov/Dec highs. Daily studies are well placed for gains. Bears now need a close

below 97.2350 to ease bullish pressure and below 97.1750 to confirm a break of

the 55-DMA and bull channel base targeting 97.0450 2018 lows.