The space moved back to the SYCOM......>

AUSSIE BONDS: The space moved back to the SYCOM highs on the back of risk off

flows stemming from a softer Yuan fixing from the PBOC, which saw the yuan

crosses spike higher, before they retraced a large part of their gains, with

Bonds holding around best levels.

- The domestic 3-/10-Year yield differential last trades around a little under

1.0bp flatter at 52.3bp, after registering a low of 50.9bp. The AU/U.S. 10-Year

spread continues to operate sub -20bp.

- The AOFM's issuance schedule revealed that there will be no issuance next

week, remember this week saw the launch of the new 2.75% 21 May 2041 Bond.

- YMU8's sell-off Thursday lacked follow through with an aggressive bounce ahead

of 55- (97.844) & 100-(97.833) DMAs. Bears now need a close below the 100-DMA to

end bullish hopes and below 97.795 to confirm focus on 97.675 2018 lows. Bulls

continue to look for a close above the 21-DMA (97.913) to gain breathing room.

- 3-Month BBSW fixed 0.9bp lower today, with the bill strip trading marginally

mixed last.

- Participants now focus on next week's AU CPI release.