Aussie Bonds have followed Tsys and....>

AUSSIE BONDS: Aussie Bonds have followed Tsys and failed to react to strong

auction for the Nov '22 Bond. 3-Year Bond futures last trade at 97.755 (+2.5

ticks), while 10-Year bond futures trade at 97.120 (+3.5 ticks).

- The domestic 3-/10-Year yield differential sits 1.0bp flatter at 66.2bp, while

the AU/US 10-Year yield differential has operated in a tight range and trades

0.3bp tighter at -19.6bp.

- News flow has been light, with Bonds opening lower on the back of the latest

round of trade war headlines from the weekend. The US placed tariffs on Chinese

goods "on hold" after China pledged to significantly boost its purchases of US

goods, with a US delegation set to visit China to discuss trade matters.

- Block buying interest in US 10-Year Tsy futures has led to a recovery in

broader fixed income assets.

- 3-Month BBSW fixed ever-so-slightly lower today, with the Bill strip sitting a

tad flatter. The white & red contracts last trade unchanged to 4 ticks higher on

the day.

- Participants await a speech from RBA Gov. Lowe on Wednesday.