______________AUSTRALIAN CREDIT/FOREX SNAPSHOT__________________

FOREIGN EXCHANGE AT 0200 GMT (against previous Sydney close) 0.8020/24 (0.8061/64) 1.2466/73(1.2490/07) 76.54/57 (76.79/83) 95.39/43 (95.26/28) 0.5720/25 (0.5731/34) 1.4022/23(1.4065/68)

DEBT FUTURES CASH YIELDS

90-DAY BILL (SEP) 96.77 ( 0.00) 3.25(3.24)

3-YR BOND (SEP) 95.24 (+0.09) 4.59(4.72)

10-YR BOND (SEP) 94.475 (+0.065) 5.65(5.81)

3/10 SPREAD +0.750 (+0.745) AUST/US 10-YR SPREAD +210(+215)

S&P/ASX 200 3911.9 (3903.8) US10-YR 3.55(3.58)

----------------------------June 29-----------------------------

* Australian dollar slips back to test support under $0.8020

on Monday, after an early run-up failed to break the week highs

around $0.8088 and instead drew fresh offers.

* Aussie also eases to 76.55 yen after faltering at

77.00, though it remains well above last week's lows near 74.00.

* Some disappointment Japanese industrial production only

rose 5.9 percent in May, when analysts had looked for a 7.0

percent jump. Japan is the single biggest importer of

Australian resources.

* Traders also noted a report that China may stop buying

metals for its strategic reserves, and Australia is a major

exporter of metals.

* No domestic data due on Monday, though figures on retail

sales and building approvals later in the week are expected to

show the continued benefit of fiscal and monetary stimulus .

* If so, it should add to speculation that the Reserve Bank

of Australia (RBA) is done easing with rates at 3 percent well

above those in other developed nations.

* Trade thin for the moment ahead of the end of the quarter

and the end of the financial year for some countries. The always

important U.S. payroll reports is also due on Thursday, with

Friday a holiday in the United States.

* The U.S. dollar had slipped on Friday in part after China's

central bank again questioned the reserve status of the dollar

and called for a super-sovereign currency

* But over the weekend, the head of the PBOC said its reserve

policy was stable and not likely to change suddenly.

* Australian bond futures bounced for a second session,

thanks in part to a rally in U.S. Treasuries in the wake of

strong debt auctions last week.

* Three-year bond futures rose 0.090 points to 95.24,

and away from a near-nine-month low 95.07, while 10-year bond

futures gained 0.065 points to 94.475.

* Local 10-year cash yields remained a sizable 210 basis

points over U.S. yields, near the widest spread in 11 months, on

a view official rates here will rise before those in the States.

(Reporting by Wayne Cole; Editing by James Thornhill)

(If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: MARKETS AUSTRALIA BONDS/FOREX

(wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net)

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