A quiet session for Aussie bonds,......>

AUSSIE BONDS: A quiet session for Aussie bonds, futures opened SFE slightly

lower, giving back some of Friday's gains as US/North Korea tensions recede

slightly. The top US general said that the focus was a on a diplomatic solution

with North Korea, though noted that all options were being considered should

they become necessary.

- RBA's Kent spoke early on in the session and reiterated the RBA's dovish

stance, saying that rate hikes would not come any time soon, the comment was

nothing new for markets and failed to catalyse a move with US/North Korea angst

still at the back of traders minds.

- The AOFM sold A$500mln of 2.25% 2028 bonds, the sale saw strong cover on

expectations a dovish RBA for the foreseeable future despite looking fairly rich

on the curve.

- Futures are down around 3 ticks with the move coming early on SFE and rang

rangebound trade thereafter. Yields higher across the curve, moves fairly even

with the 3/10 Year spread flat at 62.8bp. 10-Year yield last up 2bp at 2.608%.