Aussie Bonds have followed the.........>

AUSSIE BONDS: Aussie Bonds have followed the global fixed income space lower in

the wake of the U.S.-EU trade talks, with the longer end underperforming on the

move, as 10-Year futures erase the bulk of yesterday's gains.

- The domestic 3-/10-Year yield sits around 2bp steeper as a result at ~58.5bp,

while the AU/U.S. 10-Year yield differential has moved back out to -26.5bp.

- Looking at the short end, the Bill strip is trading broadly unchanged after

3-Month BBSW fixed 0.1bp lower, while the short tenor repos in play today saw

rates drift lower.

- Traders now look to next week's Jun/Q2 retail sales release followed by the

RBA decision on 07 August, as well as the AOFM issuance schedule for next week.