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 97.795 (+1.0 tick), while 10-Year Bond futures trade at

97.230 (+1.5 ticks), although the space has backed off the early session highs

that came on the back of a flurry of buying.

- The domestic 3-/10-Year domestic yield spread operates at 58.7bp (-0.4bp)

while the AU/US 10-Year spread is 1.9bp wider at -19.5bp, back from early wides.

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

contracts last trading 1-2 ticks higher on the day, decent buy side flow was

noted in IRU8 in early dealing, although the contracts have edged away from

session highs, alongside Bonds.

- 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 domestic risk event this week.