Aussie Bond futures have stuck to a....>

AUSSIE BONDS: Aussie Bond futures have stuck to a tight range, trading just off

the opening highs last, with U.S. cash Tsys closed until the London open owing

to a Japanese market holiday.

- Bonds have failed to benefit from the weekend headlines which noted that China

has pulled out of the upcoming scheduled trade talks with the U.S. amid

escalation of tariff threats, the formal imposition of the latest round of U.S.

tariffs on imported Chinese goods & a Chinese white paper re: trade.

- The AOFM's auction of A$800mn of the 2.75% 21 November 2029 Bond was easily

absorbed with the cover ratio holding up and tail holding steady in what was a

solid auction.

- The domestic 3-/10-Year yield differential has steepened a touch, last trading

at 60bp.

- The repo market continues to exhibit the signs of quarter end tensions, with

rates treading higher again today. 3-Month BBSW fixed 1bp higher today, but

still lags the move seen in repo thus far in the cycle.

- The Bill strip trades 1 tick lower to 1 tick higher last.