Impetus from Tsys/trade war headline...>

AUSSIE BONDS: Impetus from Tsys/trade war headline related flow weighed on the

space during SYCOM hours promoting some light steepening of the curve, leaving

YM -1.5 & XM -3.0 at writing (both contracts have recovered from worst levels),

with YM/XM sitting at 36.5.

- All 3 of the flash CBA PMI readings edged into contractionary territory

earlier today, with the report noting that "activity in the key manufacturing

and services sectors continues to bounce around the 50 line that separates

expansion from contraction. This is a particularly disappointing result when

benchmarked against interest rate cuts, tax cuts, rising house prices and a

still solid labour market. Readings on new orders and employment offer a glimmer

of positive news. But the challenges faced by Australian businesses are evident

in the accelerating growth in input prices and the slowing trend in output

prices. Competitive pressures and weak demand are taking a toll."

- Bills deal unchanged to 3 ticks lower through the reds.

- The AOFM weekly issuance schedule will draw some interest when it is released

later today.