Aussie Bond futures edged lower for most.....>

AUSSIE: Aussie Bond futures edged lower for most of the SYCOM session, in line

with Tsys, before a late sell off was triggered by a WSJ headline that suggested

Tsy Sec Mnuchin was discussing a lift of some/or all China tariffs. Took less

than 10 minutes for the retract from Tsy spokesperson: "neither Sec Mnuchin nor

TR Lighthizer have made any recommendations to anyone with respect to tariffs or

other parts of the negotiation." This has allowed the lead contracts to move

back to pre-headline levels YM last -2.5 ticks, XM last -3.0 ticks. YM/XM at

52.5, with the cash 3-/10-Year yield differential last 49.7bp, little changed on

the day.

- The Bill curve trades steeper, 1-4 ticks lower across the whites and reds.

Today's RBA repo ops saw A$1.745bn worth of 35-Day ops dealt at 2.116%, with the

creep higher continuing.

- Focus today falls on the broader risk backdrop and the release of the AOFM's

weekly issuance plan.