Bond futures are having a look below...>

AUSSIE BONDS: Bond futures are having a look below their SYCOM lows after U.S.

President Trump tweeted that

that the U.S. will delay tariffs on China, previously set for March 1. Trump

also reported "substantial progress" in trade talks with Beijing and said a

summit for Chinese President Xi and himself is planned for March, with the aim

of "concluding the agreement," based on "additional progress." This comes after

the trade talks were extended over the weekend. Markets continue to look for

greater clarity on the trade deal, particularly around the details of an

agreement surrounding FX.

- YM last -2.0 ticks, XM +0.5 tick. YM/XM trades at 43.00, with the cash

equivalent at 43.4bp.

- Bills trade 1 to 2 ticks lower through the reds, even as 3-Month BBSW

continues to fix lower. RBA reverse repo ops saw A$1.810bn worth of 9-Day ops

dealt at an average of 1.710%.

- Focus now moves to the supply of the AOFM's 3.25% 21 June 2039 line at the top

of the hour.