A quiet start again for Aussie.........>

AUSSIE BONDS: A quiet start again for Aussie bonds, futures opened lower in

tandem with the move in US tsys, buoyant stocks also likely to keep bonds under

pressure today as well as a slight glimmer of economic optimism around the Trump

administration after reports that his team are making progress on tax reforms.

- Yields opening higher across the curve after squeezing out some small gains

yesterday. Seeing the 3-/10-Year spread widen further in early trade as the

curve steepens, last at 65.3bp but still within the range of 64-71bp since late

June. AU/US 10-Year spread widens 1.8bp on the day, last at 45.8bp, just off

2017 highs of 47.1bp hit on July 20. Short end of the Aussie curve anchored on

RBA policy which has seen more active 10-Year sector.

- Looking ahead to the session data is thin with just the Australia July skilled

vacancies due at 0200 London/100 Sydney. Iron ore is slightly lower today after

rallying around 9% from late last week.

- ANZ note that "Having underperformed in recent days, the Australian market is

likely to remain heavy today ahead of significant corporate and government debt

issuance."