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 traded ~3.5bp flatter at ~64.5bp, while the AU/U.S. 10-Year yield

spread deals at -46.0p as the longer end of the AU curve outperforms.

- In an interview with the WSJ RBA's Harper noted that "doubts persist about the

resilience of Australian consumers, keeping the RBA sidelined for now. An

interest-rate increase in the near term would spook consumers at a time of soft

wage growth & falling house prices."

- 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.

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

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