Aussie bond futures have benefitted....>

AUSSIE BONDS: Aussie bond futures have benefitted from the renewed global risk

off sentiment, with the 10-year trading at a weekly high at 97.265. Yesterday's

weakness was unable to extend weakness below cycle lows at 97.20, which shifts

the focus back to the upside. 

- 10-year yields are trading at 2.720% after recovering from their earlier lows

at 2.695%. The 3s-10s curve trades flat at 68.1bps as the curve continues to

gradually flatten from last Friday's high.

- AU-US 10-year spreads have risen back to -45.0bps, up 10bps from last

Thursday's lows. The real yield spread has also rise back to -17.3bps as it

continues to rise from last week's peak. 

- The Australian Office of Financial Management (AOFM) will today sell A$500mln

of Treasury notes maturing on 22 February 2019.