As we draw towards the close of play...>

AUSSIE BONDS: As we draw towards the close of play it would seem that Chinese

equities' strong start to the week will be the story into the EU crossover,

which allowed AU Bond futures to move away from session highs, with the space

largely tracking Tsys thus far.

- It is also worth highlighting the uncertainty caused by a local by-election

over the weekend, which seems to have resulted in the ruling government losing

its parliamentary majority.

- The domestic 3-/10-Year cash yield differential has added 1.5bp, to trade a

touch steeper at ~65.0bp, while the AU/U.S. 10-Year spread last deals at

~-49.5bp.

- RBA's Debelle had little to say on MonPol in his latest address, while the

auction of a 3-Year Bond futures basket constituent was easily absorbed by

market.

- 3-Month BBSW fixed ~0.1bp lower today, with the Bill strip dealing 1 to 3

ticks lower last.

- Focus now turns to comments from RBA's Debelle & Bullock tomorrow.