The aforementioned dynamics also.......>

AUSSIE BONDS: The aforementioned dynamics also helped Aussie bond futures away

from their early lows, with YM -2.5 and XM -3.5. YM/XM deals at 36.0 and the

cash equivalent sits at 33.8bp.

- The cover ratio edged higher in the latest tap of ACGB 2.75% 21 May 2041,

while ACT (AusCap) mandated banks re: issuance of a new A$ 12-Year Oct '31

benchmark bond. On the cash flow front it is worth noting that the next week

sees ~A$19.5bn worth of ACGB coupon payments and redemptions. ~A$435mn worth of

this comes via coupons paid tomorrow, while the remainder will come on the 21

October, with the bulk being provided by a ~A$15bn redemption of the maturing

ACGB 2.75% 21 October 2019.

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

- Thursday's labour market report will be key for the RBA and headlines the

local docket this week. Elsewhere, the RBA's Oct meeting minutes will hit on

Tuesday, with Deputy Gov. Debelle set to speak on Thursday and Governor Lowe set

to speak on Saturday morning (Australia time)/ late in the NY afternoon on

Friday.