Futures ticked away from lows in.......>

AUSSIE BONDS: Futures ticked away from lows in early dealing, with little in the

way of direct headline catalysts apparent. A degree of worry may have crept in

ahead of the China Caixin manufacturing PMI print, but the trepidation proved

unwarranted on the back of a slightly stronger than expected Chinese Caixin

manufacturing PMI release (even though the metric remained in contractionary

territory). The print allowed futures to move back from SFE session highs. The

latest AOFM weekly issuance schedule held no surprises.

- YM last -4.5 ticks, with XM -5.5 ticks. YM/XM trades at 47.5, with the cash

equivalent at 48.4bp. The AU/U.S. 10-Year yield spread trades at -56.3bp.

- Bills are running unch.-4 ticks lower through the reds. 3-Month BBSW fixed

marginally higher today, bringing the record 25-day streak of lower fixes to an

end. RBA repo ops saw A$1.81bn worth of 17-day ops dealt at an average of

1.803%, while A$1.585bn worth of 63-day ops were dealt at an average of 2.030%.

- Focus turns to the RBA decision due Tuesday, which will be followed by a

speech from RBA Gov. Lowe on Wednesday. Elsewhere GDP partials will be

scrutinised ahead of the GDP print on Wednesday. Retail sales hit on Thursday.