Aussie Bonds have followed U.S. Tsy....>

AUSSIE BONDS: Aussie Bonds have followed U.S. Tsy futures back from the

overnight lows in early SFE trade, in spite of U.S. Tsy Sec Mnuchin pointing to

plans for top Chinese trade envoy Lie He to journey to the U.S. later this

month.

- Futures still trade marginally lower on the day with YM & XM both down 0.5

tick, YM/XM last at 53.0, while the cash 3-/10-Year yield differential trades at

49.6bp.

- Bills running unchanged to 2 ticks softer through the whites and reds. RBA

Reverse repo ops saw A$780mn worth of 12-Day ops dealt at 2.029% & A$1.355bn

worth of 34-Day ops dealt at 2.009%, rates consolidating above 2.0%.

- Focus today falls on AU retail sales and the AOFM's weekly issuance schedule.