As mentioned earlier there is little...>

AUSSIE BONDS: As mentioned earlier there is little to report locally, with the

space being driven by offshore gyrations for the time being. The bid in

Tsys/sell-off in Asia-Pacific equities leaves the main local contracts off of

worst levels.

- YM -3.5 ticks, with XM -5.0 ticks. YM/XM trades at 40.0 ticks, with the cash

equivalent at 35.8bp.

- The latest ACGB auction saw the average price fall pretty much in line with

the when issued price, although the cover ratio softened and gap to the high

yield widened a touch when compared to the previous auction.

- Bills trade 2-4 ticks lower through the reds. RBA repo operations saw A$1.07bn

worth of 14-day ops dealt at an average of 1.245%, A$1.15bn worth of 37-day ops

dealt at an average of 1.251% & A$667mn worth of 71-day ops dealt at an average

of 1.229%.

- Focus will return to onshore matters throughout the week, with the latest NAB

business survey due tomorrow and a speech from RBA Deputy Governor Debelle due

Thursday (in NY hours).