Flat, Focus On Sino-Aussie Relations

Futures stuck to tight ranges overnight, with the U.S. observing the Columbus Day holiday (resulting in no U.S. cash Tsy trade on Monday). YM and XM both hover around unchanged levels in early Sydney trade, with little movement seen in the cash space.

• A story that generated little interest when it hit on Friday is receiving more focus during the early part of this week. To recap, Platts sources suggested that "state-owned utilities and steel mills in China received verbal notice from China's customs to stop importing Australian thermal and coking coal with immediate effect." This would of course represent the latest blow to Sino-Aussie relations. Australian Trade Minister Birmingham has noted that the government has contacted China as it looks to assess the validity of the reports.
• Bills sit little changed through the reds.
• Indexed linked supply from the AOFM is due later today, but headline watching and focus on matters surrounding China will likely dominate during Tuesday's session.