Futures have been underpinned by.......>

AUSSIE BONDS: Futures have been underpinned by U.S.-Saudi tensions and

uncertainty regarding Brexit & the Italian political situation underpinning the

space in early dealing this week after Friday's SYCOM uptick (with yields

playing catch up at the cash open today).

- The domestic 3-/10-Year cash yield differential currently trades ~3.5bp

flatter at ~64.5bp, while the AU/U.S. 10-Year yield spread deals at -44.5bp as

the longer end of the AU curve outperforms.

- On the corporate issuance front Corporacion Andina De Fomento has mandated

banks for potential kangaroo bond issuance & BFCM announced a new 5-Year A$

deal, while on the regional government front WATC is to conduct a tender of its

existing 2028 benchmark Bond on October 16.

- 3-Month BBSW fixed 0.2bp higher today, with the Bill strip trading a tick

softer to 2 ticks higher last, as the white contracts underperform.

- Immediate focus falls of the minutes from the RBA's most recent MonPol

decision, due tomorrow, with the domestic labour market report due Thursday.