Futures have edged higher in early.....>

AUSSIE BONDS: Futures have edged higher in early dealing this week, likely

supported by ~A$9.5bn worth of redemptions being put to work & a modest risk off

feel to the start of the week, as uncertainty around U.S.-Saudi tensions & Axios

reports pointing to U.S. President Trump having no intention to ease tariffs on

China underscore demand in early dealing.

- It is also worth highlighting the uncertainty caused by a local by-election

over the weekend, which seems to have resulted in the ruling government losing

its parliamentary majority.

- The domestic 3-/10-Year cash yield differential hovers around 63.5bp, while

the AU/U.S. 10-Year yield spread sits at -51bp.

- 3-Month BBSW fixed 0.1bp lower today, with the Bill strip dealing unchanged to

2 ticks lower last.

- The Australian Office of Financial Management (AOFM) will sell A$500mn of the

2.25% 21 November 2022 Bond, issue #TB153, at the top of the hour.