Aussie Bond futures have ticked away...>

AUSSIE BONDS: Aussie Bond futures have ticked away from Friday's SYCOM lows,

allowing for some outperformance vs. U.S. Tsys, with the AU/U.S. 10-Year yield

spread sitting at ~-33.5bp.

- Potential political unrest re: the future of PM Malcolm Turnbull may be

underpinning the space in early dealing, although he has stressed that he has

the confidence of the cabinet & his party room.

- The domestic 3-/10-Year yield differential has flattened a touch, to last deal

at 52.3bp, continuing the theme from last week.

- On the corporate issuance front, Commerzbank has announced an inaugural A$ T2

10-Year subordinated transaction, while VW Financial has mandated banks for a

3.5 Year A$ denominated deal.

- The Bill strip last trades a unch. to 2 ticks higher following Bonds, while

3-Month BBSW fixed 0.5bp higher at 1.955% today.

- Traders will look to the release of the RBA's Aug meeting mins, due Tuesday,

with plenty of additional RBA-speak dotted throughout the week (Gov. Lowe, Asst.

Gov. Debelle & Boulton). Econ releases include AU Q2 completed construction.