The space lost ground on SYCOM, as.....>

AUSSIE BONDS: The space lost ground on SYCOM, as global fixed income markets

gave back most of the Cohn-inspired gains, and printed fresh lows at the start

of the SFE session. Bonds now sit just off of worst levels with the 3-Year

future trading at 97.890 (-1.0 tick) and 10-Year futures at 97.195 (-2.5 ticks).

- The domestic 3-/10-Year yield differential last sits at 73.1bp, while the

AU/US 10-Year spread is broadly unchanged at -5.8p.

- The white-red bill contracts are unchanged - 2 ticks lower.

- BBSW fixed 1.5bps higher today.

- Looking at the 10-Year futures from a technical perspective, topside

hesitation around the 100-DMA (97.2846) and ahead of the 200-DMA have taken

their toll with immediate pressure back on the 21-DMA (97.1707). Bears still

need a close below the 21-DMA to shift focus back to 97.0167-0450 where 2018

lows and the LT bull channel base off 2008 lows are noted. Initial resistance

remains at 97.2450 with bulls needing a close above to return pressure to the

200-DMA.