Aussie bond futures followed the.......>

AUSSIE BONDS: Aussie bond futures followed the broader ebb & flow, being driven

by elevated U.S.-Iran tensions & soft Chinese Caixin PMI data, with the main

contracts finishing a touch shy of their respective SFE highs, YM +3.5, XM +5.0,

bettering their SYCOM peaks in the process. This left the curve 1.5 ticks

flatter at 44.0

- Comments from Australian PM Morrison came under scrutiny as he pointed to

A$2bn being made available for bushfire recovery efforts, over a 2 year period.

He also stressed that more would be provided if needed and that the budget

surplus is not a focus point during bushfire recovery efforts. Meanwhile,

Treasurer Frydenberg noted that it was too soon to assess the economic impact of

the fires.

- Early local data releases saw the AiG m'fing PMI remain in contractionary

territory, while the final CBA services & composite PMI readings weren't quite

as soft as the flash estimates, but were still below 50.0.

- Bills closed 2-4 ticks higher through the reds.

- The local docket is quiet tomorrow, before picking up on Wednesday.