Bonds followed US Tsys in the early....>

AUSSIE BONDS: Bonds followed US Tsys in the early part of the session,

retreating from the early highs as US President Trump's latest round of tweets

re: North Korea helped to limit demand for safe havens. This was before a bid

came into Aussie Bonds, perhaps showing some demand for the AU/US 10-Year spread

to move back out to the familiar ~-20bp region.

- The domestic 3-/10-Year yield differential continues to operate at ~60.0bp,

while the AU/US 10-Year yield spread trades at ~-18.5bp.

- 3-Month BBSW fixed 0.89bp higher at 2.065% today. The white and red Bill

contracts last trade 2 ticks lower to 1 tick higher.

- A speech from RBA Governor Lowe is set to dominate local interest today, with

the domestic labour market report due tomorrow.

- The rolls have once again been active ahead of Friday's expiries with over 50%

of the business complete for XM & YM.