Aussie Bonds have started the week.....>

AUSSIE BONDS: Aussie Bonds have started the week on the front foot, with 3-Year

Bond futures trading at 97.805 (+2.0 ticks), while 10-Year Bond futures trade at

97.240 (+2.5 ticks).

- The domestic 3-/10-Year domestic yield spread operates at 59.3bp (+0.2bp)

while the AU/US 10-Year spread is 2.5bp wider at -20.2bp.

- 3-Month BBSW fixed 2.5bp lower at 1.995% today, with the white & red Bill

contracts last trading 1-3 ticks higher on the day, decent buy side flow was

noted in IRU8 in early dealing.

- News flow has been light thus far, with Fedspeak forming the focal point for

traders on Monday. Australian retail sales data will hit on Tuesday, which forms

the major risk domestic event this week.

- From a technical perspective 10-Year futures hesitation ahead of the

97.045-080 support region has resulted in a correction that sees immediate focus

on 97.260-3096 where the 200-WMA is located. Bulls now need a close above the

200-WMA to shift initial focus to 97.400-440. Follow through was lacking Friday

& bears now look for a close below 97.150 to retain initial focus on '18 lows.