The space moved higher in early SFE....>

AUSSIE BONDS: The space moved higher in early SFE trade, probably aided by a

report from the Washington Post which noted that US President Trump is set to

announce steel and aluminium import tariffs on Canada, Mexico and the EU on

Thursday and suggested that import taxes could take effect as soon as Friday.

- The space sat around session highs in the wake of a softer than expected CapEx

release, with the underlying investment expectations also proving to be somewhat

disappointing. Although Bonds have now ticked back from best levels.

- 3-Year Bond futures last trade at 97.875 (unch.), while 10-Year Bond futures

trade at 97.335 (-1.5 ticks). The domestic 3-/10-Year yield differential trades

1.6bp wider at 56.2bp, while the AU/US 10-Year spread trades 0.4bp tighter at

-18.8bp.

- It has been a relatively sedate start for the Bill strip although longer dated

contracts garnered some support in the wake of the CapEx print.