Aussie bonds have started the new week a touch below their late overnight levels, with YM -0.5 & XM -2.0, as global core FI markets look through weekend news flow headlined by softer than expected official manufacturing PMI data out of China & bubbling Sino-U.S. tensions surrounding Taiwan (fleshed out in earlier bullets).

• A quick reminder that cash ACGB markets are closed on Monday owing to the observance of a state holiday in NSW.
• Bills run 3bp lower to 1bp higher through the reds, twist flattening.
• Note that the weekend saw the release of latest round of CoreLogic house price data, which revealed a 1.4% M/M fall in July, representing the swiftest rate of headline decline observed since the 1980’s.
• Looking ahead, Monday’s domestic highlights include ANZ job ads data, Melbourne Institute inflation readings and the final S&P m’fing PMI print. Note that the Chinese Caixin manufacturing PMI print will provide a source of offshore interest during Monday’s session.