Broader risk-off matters mentioned.....>

AUSSIE BONDS: Broader risk-off matters mentioned elsewhere support the space in

early trade this week after a relatively sideways SYCOM session rounded off last

week's price action, although bond futures have edged away from the early highs

alongside T-Notes. YM +2.0, XM +1.0, leaving YM/XM at 32.0.

- Cash bonds will be closed owing to Sydney/NSW holidays, which will also limit

liquidity.

- Bills sit 1-4 ticks higher through the reds.

- Worth noting that an interview given by ex-RBA chief Ian Macfarlane to the

Australian was released over the weekend, and he suggested that any further rate

cuts will have very little power, noting that MonPol has "done everything it can

do. Once interest rates are negligible, further cuts would seem to have very

little power to do anything useful."

- Broader risk matters will shape performance for the space today, with the

latest round of construction PMI data ignored by markets, and nothing of note on

the local docket during the remainder of the day.