Aussie bond futures have given back....>

AUSSIE BONDS: Aussie bond futures have given back some gains after failing to

extend through yesterday's high at 97.375 amid a recovery in risk appetite led

by Chinese stocks. Down trendline resistance from the Sep highs comes in at

97.40, and the broader bearish trend remains intact below here. 

- 10-year cash yields have failed to mount a reversal and continue to trade down

on the day at 2.619%. This has sent the AU-US spread to fresh 2-week lows at

44.4bps. 

- The Australia 3s-10s curve is off its lows last at 57.55bps but the downtrend

remains intact. 

- Real 10-year yields have seen some upward pressure from the continued fall in

breakevens. 

- The data docket has been light today with a fall in construction work done the

only highlight and Aussie markets will likely take their lead from upcoming

US-China trade talks.