Aussie Bonds have stuck to a tight.....>

AUSSIE BONDS: Aussie Bonds have stuck to a tight range in early dealing this

week after some underperformance vs. Tsys late Friday as U.S. paper benefitted

from Fed Chair Powell's dovish remarks.

- The cash 3-/10-Year yield differential continues to trade just above 50bp,

while the AU/U.S. 10-Year yield spread has moved in to ~-27.0bp.

- 3-Month BBSW fixed virtually unchanged today, with the Bill strip last trading

unchanged to 3 ticks softer than Friday's settlement on the back of the

aforementioned softness during SYCOM dealing, aided by the S&P500 reaching a

fresh all-time high in the final session of last week.

- Looking at the interbank strip, there has been decent activity in IBJ9 this

morning, with some ~11K changing hands at 98.495. As a reminder, many banks have

pushed back their calls for the first hike from the RBA in recent weeks, with

Westpac now exp. the RBA to remain on hold through 2020.

- Thursday's Q2 CapEx data provides the focal point on the AU docket this week.