Futures continue to be underpinned.....>

AUSSIE BONDS: Futures continue to be underpinned by a ratcheting up in trade war

matters over the weekend, operating in a tight range, at/just above SYCOM highs

in early dealing this week. Also worth noting that China's Commerce Ministry

announced that it is launching an anti-dumping investigation on imported barley

from Australia. Some suggested that this will be interpreted as retaliation for

the AU-U.S. security deal that was signed over the weekend.

- A softer 10-Year basket bond auction did little to alleviate the bid, despite

some modest sell side flow being registered in the 3-Year space shortly after

the results hit.

- The domestic 3-/10-Year cash yield differential trades ~0.5bp flatter at

~58.5bp last, while the AU/U.S. 10-Year yield spread sits at ~-40.5bp, with AU

paper lagging Tsys' move from Friday.

- University Of Sydney launched A$ 25-Year paper at an indicative yield of 4.5%.

- Bills trade 1 tick lower to 2 ticks higher through the whites & reds, while

3-Month BBSW fixed 0.1bp lower today.

- Focus on broader risk tones ahead of RBA mins & RBA Gov. Lowe speech tomorrow.