Positive comments out of China re:.....>

AUSSIE BONDS: Positive comments out of China re: the latest round of trade talks

with the U.S. drove early activity in the space, providing some pressure,

although the move in Tsys proved more notable. Trade was relatively lacklustre

during the remainder of the SFE session, with traders looking to the release of

U.S. NFP data later today.

- The results of the latest ACGB tender were ignored by the broader market as

they crossed around the time of the aforementioned headlines.

- The latest AOFM weekly issuance schedule yielded no surprises.

- YM trades 2.0 tick lower, with XM 1.5 tick worse off. YM/XM trades at 49.5,

with the cash equivalent dealing at 44.6bp.

- Bills trade 1 to 4 ticks lower through the reds.

- Focus next week moves to a speech from RBA Deputy Governor Debelle, covering

"the state of the economy." The RBA will also present its latest Financial

Stability Review. Housing finance data headlines the economic docket next week,

with Westpac consumer confidence data also due.