Aussie Bond futures opened sharply.....>

AUSSIE BONDS: Aussie Bond futures opened sharply lower owing to the weekend

developments re: U.S.-China trade matters but YMZ8 & XMZ8 struggled to hold

below Friday's lows, and have edged away from worst levels. Yields trade 1.2bp

to 3.1bp higher across the curve at writing. The domestic 3-/10-Year cash yield

spread hovers around ~59.0bp, 1.5bp steeper on the day, while the AU/U.S.

10-Year yield spread deals at -42.2bp.

- Little reaction in the space to the latest GDP partials released earlier. That

comes after soft completed construction work & CapEx data last week, although

Q2's CapEx reading was subject to upward revisions, as was the completed

construction work metric for Q2.

- The white & red Bills trade unchanged to 2 ticks lower, on fairly limited

volumes given activity elsewhere. 3-Month BBSW set 0.5bp higher today.

- Focus in the early part of the week will fall on the broader risk backdrop,

ahead of Tuesday's RBA MonPol decision & Wednesday's AU GDP release. Later in

the week participants will look to AU retail sales and trade balance data, as

well as an address from RBA's Debelle.