Flattening is the theme early on,......>

AUSSIE BONDS: Flattening is the theme early on, with YM +6.5 and XM +10.5,

although both contracts are back from best levels, leaving YM/XM at 23.5 and the

cash equivalent at 22.1bp.

- Trade war matters are the dominant theme, although it is also worth recapping

RBA Governor Lowe's comments from the weekend. Lowe reiterated that central

banks have limited ability to cushion the global economy from the headwinds it

faces at present, noting that "political shocks are turning into economic

shocks," and highlighting a risk towards easy policy resulting in inflated asset

prices.

- Bills trade 3-6 ticks higher through the reds.

- A$400mn worth of ACGB 2.75% 21 Nov 2029 supply headlines today's local docket.