Bond futures leaked away from the......>

AUSSIE BONDS: Bond futures leaked away from the early highs on the back of the

latest auction of the AOFM's 2037 bond line. The cover ratio ticked higher when

compared to the previous auction, although all bids at the high yield in the

latest auction were allocated in full, which added weight to the space. That was

before a soft Chinese Caixin manufacturing PMI print put a floor on the space,

allowing bond futures to register fresh session highs, with the space sitting

back from best levels at writing. The AOFM issuance schedule held no surprises. 

- YM last +1.5 ticks, XM +3.0 ticks. YM/XM trades at 49.0, with the cash

equivalent at 47.6bp. The AU/U.S. 10-Year yield spread trades at -42.6bp. Bills

have tracked Bonds, with the whites and reds trading 1-3 ticks higher at

writing. RBA repo ops saw $1.25bn worth of 20-Day ops dealt at 2.037%, with

$1.095bn worth of 49-Day ops dealt at 2.031%.

- Next week's AU docket is busy, with the first RBA decision of 2019, an address

from RBA Gov. Lowe, the Bank's quarterly SoMP and the findings from the Royal

Commission on the banking sector all due. Elsewhere retail sales, trade balance

& NAB business confidence will hit.