Aussie bond futures steepened a........>

AUSSIE BONDS: Aussie bond futures steepened a touch at the Sydney re-open, in

light of U.S. Tsy moves in late NY trade, but held a tight range for most of the

session, looking through the AOFM issuance schedule (Bill heavy again, with

coupon issuance looking to Bonds that will be backstopped by the RBA's YCC

policy, in addition to one offering from the AOFM's preferred 9-12 Year zone)

and the latest taper of RBA ACGB bond purchases (down to A$750mn from A$1.0bn).

Chinese data also had no discernible impact on the space. YM -1.5, XM -2.0.

- Bills trade +1 to -1 through the reds, with the overnight cash rate fixing at

0.5%.

- Also worth flagging that Tuesday will see heavy coupon payments.