Aussie bonds lower after weak..........>

AUSSIE BONDS: Aussie bonds lower after weak auction, the 4.50% April 2033 sale

was covered just 1.87x, the weakest in this maturity since August 2016. 

- 2017 was a record year for demand at Aussie bonds, coverage ratios were the

highest for 12 years.

- Pressure on spreads as US bonds continue to sell off, especially in the wake

of strong US NFP data on Friday. Market will closely watch a spate of RBA

data/communication this week for insight into the Banks outlook. The RBA rate

announcement comes on Tuesday and the RBA's quarterly forecast update and policy

statement will be released on Friday, RBA Governor Lowe will deliver a speech on

Thursday.

- The post auction sell off takes the Aussie 10-Year yield to 2.892%, the

highest in 11 months, but this can only push the AU/US 10-Year spread to 4.6bp,

still near the lowest levels since 2000.