Caution surrounding the trade war......>

AUSSIE BONDS: Caution surrounding the trade war provided support for the space

on SYCOM, with the major bond futures sticking to a tight range in early SFE

dealing. YM last +1.5, with XM +3.0, leaving YM/XM at 40.0 and the cash

equivalent at 39.8bp. Bills sit unchanged to 2 ticks higher through the reds.

- The minutes from the RBA's latest MonPol decision are due today, and present

the key local risk event over the coming days. Participants are looking for any

mention of unconventional MonPol measures, whether we will see any such

utterances is another story. As a reminder, RBA Governor Lowe will speak on

"Unconventional Monetary Policy: Some Lessons from Overseas" in a weeks time. He

has previously pointed towards the merits of a package of easing components and

drawn on examples from abroad. Elsewhere, RBA Asst. Gov Kent is speaking on a

panel at the Australian Securitisation Forum, but we haven't seen any comments

as of yet. Treasurer Frydenberg has written in the AFR, seemingly quashing hopes

of impending, fresh fiscal stimulus. He speaks later today.

- On the corporate issuance front, Qantas launched a new 10-Year A$ note, while

NextEra Energy launched a 7-Year Green Kangaroo line.