The space moved to fresh highs on......>

AUSSIE BONDS: The space moved to fresh highs on the back of a soft domestic

labour market report, and Bonds continue to operate around best levels. The

labour report's headline reading came in shy of expectations, driven by a fall

in the number of those employed on a full time basis. Elsewhere the

participation rate eased marginally, which actually resulted in a marginal dip

in the unemployment rate.

- The underemployment & underutilisation rates remain elevated, which doesn't

auger well for wage growth/inflation.

- AU paper has continued to outperform US Tsy equivalents in recent sessions,

with the AU/US 10-Year yield differential now trading at ~22.0bp, after trading

at ~-13.0bp earlier this week, while the domestic 3-/10-Year yield differential

continues to operate either side of 60bp.

- 3-Month BBSW fixed ~0.3bp higher today. The white and red Bill contracts are

last trading unchanged to 3 ticks higher.