Aussie Bonds have ticked higher in.....>

AUSSIE BONDS: Aussie Bonds have ticked higher in early SFE dealing, although

headline catalysts have been somewhat limited, and it may just represent a

degree of spill over from a dovish RBNZ across the Tasman, as well as the

continuing trade rhetoric/tariffs between the U.S. & China.

- The domestic 3-/10-Year yield differential sits a touch flatter at 58.2bp

last, with the AU/U.S. 10-Year yield spread sitting just above -30bp.

- The Bill strip has also been dragged higher, likely on spill over from the

RBNZ's shallower rate path, with flattening apparent, as the space trades

unchanged to 4 ticks higher, despite 3-month BBSW fixing some 0.5bp higher

today.

- Corporate issuance again in vogue today, with Sumitomo Mitsui's Sydney branch

launching 2-Year paper after yesterdays A$300mn 3-Year fixed from HSBC priced at

73bp over BBSW.

- Focus is on the RBA's SOMP, due tomorrow, although Gov. Lowe likely revealed

the key tweaks to the forecasts in his address yesterday.