A muted restart for the space after....>

AUSSIE BONDS: A muted restart for the space after futures followed Tsys lower on

SYCOM.

- YM last trades 4.5 ticks lower on the day, with XM -7.5 ticks. YM/XM testing

yesterday's high at 50.0, with the cash equivalent trading at 45.6bp.

- Bills trade 3-5 ticks lower through the reds. RBA repo operations saw A$1.26bn

worth of 32-day ops dealt at an average yield of 1.883%.

- Today's Australian docket is empty, leaving the focus on international

developments and risk flows. The recent run of Chinese PMI data, coupled with

the stronger than expected Australian trade & retail sales data, a risk-on

environment and greater optimism surrounding U.S.-China trade matters has seen

Aussie 3- & 10-Year yields edge away from their all-time lows.