Space grinding higher in early.........>

AUSSIE BONDS: Space grinding higher in early Sydney trade, along with Tsys. YM

+3.5, XM +4.25, market seemingly a little disappointed with lack of clear

movement on Trump's fiscal plans after yesterday's risk rally.

- Worth reflagging the latest address from RBA Dep Gov. Debelle, who noted that

"the Australian banks had raised a significant amount of wholesale funding

before the disruption to markets and deposit inflows are robust. They are

resilient to a period of market disruption. Spreads on Australian bank bonds

have widened, although yields remain at levels that are still very low

historically. We have not seen any particular sign of pressure in our daily

market operations to date. The spread between the bank bill swap rate and the

expected policy rate (OIS) has risen in recent days but remains low, nothing at

all like what occurred in GFC." Elsewhere, Debelle gave the first clear

indication of a preference for YCC over outright QE from the RBA, as he pointed

to a preference for price over quantity, should the need for bond buying arise.

- Worth giving our latest RBA Insight piece a once over.

- Also, swirling press talk that gov't will announce fiscal measures Thurs.