Aussie bond futures slightly lower.....>

AUSSIE BONDS: Aussie bond futures slightly lower in early trade, though have

come off session lows seen at the start of SFE trade. The initial drop came

after an upbeat assessment of the economy from RBA Deputy Gov Debelle and some

profit taking as Aussie bonds outperformed UST's on Friday after the RBA trimmed

inflation forecasts. 

- Aussie bonds catching a small bid as stocks drop at the start of the week in

Asia, also supporting bonds is the political uncertainty in Australia as John

Alexander becomes the second lawmaker to step down over dual citizenship. -

3-Year future last down 1 tick, 10-Year future last down 3 ticks, yields up

1-2.9bp across the curve, 3/10-Year spread 1.5bp tighter.

- Nothing significant on the calendar for Australia today, markets look ahead to

linker sale on Tuesday and Labour Market data on Thursday.