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

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

from a softer Yuan fixing, which saw the yuan crosses spike higher, before the

CNY retraced a large part of its gains, with state intervention touted, although

Bonds have held around best levels and seem more reluctant to give up their

gains than U.S. Tsys.

- The domestic 3-/10-Year yield differential last trades a little over 1.0bp

flatter at 51.7bp, 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, after this week's 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. 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.