Aussie Bond futures have edged away....>

AUSSIE BONDS: Aussie Bond futures have edged away from the early session lows,

and now deal around SYCOM closing levels, after the space came under some

pressure playing catch up to Friday's move lower in U.S. Tsys, and ahead of

30-Year ACGB supply, with a 6.0K seller in 3-Year futures dictating early price

action.

- The auction's bid to cover ratio held up fairly well, given the increasing

size vs. the most recent tender of the line, although the tail widened a touch.

The tender had no effect on broader Bond futures.

- The domestic 3-/10-Year cash yield differential closed at at ~65.7bp, as the

long end underperformed in the latest sell off, driven by Friday's report re:

Trump asking his cabinet to draft a potential China trade deal & a strong U.S.

labour market report. The AU/U.S. 10-Year yield spread deals at ~-47.0bp

- Bills traded lower, settling 1 to 5 ticks worse off, with 3-Month BBSW setting

~0.4bp higher today.

- The main AU events this week come in the form of the latest RBA MonPol

decision & SOMP.