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

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

week, edging away from worst levels in sympathy with Tsys, 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.

- Corporate issuance has been of note today, with the market largely ignoring

the solid auction of some benchmark 2028 paper.

- 3-Month BBSW fixed virtually unchanged, with the Bill strip last trading 1-2

ticks softer than Friday's settlement on the back of the aforementioned softness

during SYCOM dealing.

- Looking at the interbank strip, there was 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.