The space operates just shy of best....>

AUSSIE BONDS: The space operates just shy of best levels, with 3-Year Bond

futures last trading at 97.770 (+1.5 ticks), while 10-Year bond futures trade at

97.150 (+2.5 ticks).

- The space ticked to lows after US President Donald Trump noted that the Ways &

Means Committee is working on more tax cuts by "November," but the move was very

limited. This came before a move to fresh highs, in line with US Tsys. While

there was little apparent in terms of fresh headline risk it is worth noting

that Trump has reintroduced questions re: the Chinese trade situation & North

Korea over the last 24 hours which may be hampering risk. Aussie Bonds were also

supported by a soft completed construction work reading.

- The domestic 3-/10-Year yield differential sits 0.9bp flatter at 64.7bp, while

the AU/US 10-Year yield differential trades 0.9bp wider at -21.1bp.

- 3 month BBSW fixed a meagre 0.06bp higher today. The white & red Bill

contracts last trade unch. to 2 ticks higher. IB activity picked up following

the soft domestic data release.

- Participants await a speech from RBA Gov. Lowe later on Wednesday.