Aussie bonds opened SFE higher after...>

AUSSIE BONDS: Aussie bonds opened SFE higher after an ascent alongside US

Treasuries during SYCOM. US Tsys ended Monday's overnight session at weekly

price highs on safe-haven buying as N. Korea foreign minister said it could fire

even if the U.S were not in local airspace as comments from Trump suggesting the

U.S would take out N. Korean leadership were considered by N. Korea as 'an act

of war.'

- Aussie bonds futures were last up, 10-Year up 2.5 ticks, the 3-Year up 1 tick

and steady. Yields down across the curve, some steepening seen with the 3 to

10-Year spread around 1.2bp on the session

- Aus Consumer Confidence Index fell to 114.1 vs 114.8 on the week, the RBA's

Assistant Governor Bullock spoke 2215BST on a panel saying Aus households have

higher debts and low income growth adding high debt means sensitivity to

interest rate hikes and this would be put into consideration with monetary

policy.

- The AOFM auctioned A150mln Index Linked Bonds with cover 3.34 vs prev 7.04, 15

successful bids all allocated fully at high yield of 1.0075%.