Aussie Bonds have followed Tsy.........>

AUSSIE BONDS: Aussie Bonds have followed Tsy futures higher in early dealing the

week. 3-Years are threatening to break Friday's SYCOM highs, while 10-Year

futures have breached Friday's overnight session highs.

- A more cautious U.S. Fed & a ratcheting up in trade war matters over the

weekend are supporting the space. As a reminder, the weekend saw hawkish trade

comments from U.S. VP Pence re: China, while the APEC summit failed to result in

a common communique, with trade war matters dividing the room.

- The domestic 3-/10-Year cash yield differential trades ~0.5bp flatter at

~58.5bp last, while the AU/U.S. 10-Year yield spread sits at ~-41.0bp, with AU

paper lagging Tsys thus far.

- Bills trade unchanged to 2 ticks lower through the whites & reds, while

3-Month BBSW fixed 0.1bp lower today.

- Focus this week falls on the RBA's November meeting minutes, due Tuesday,

which will be followed up by a speech from RBA Gov. Lowe later the same day.