The commentary piece in Xinhua.........>

AUSSIE BONDS: The commentary piece in Xinhua adopted more cautious rhetoric re:

U.S.-China trade matters than U.S. President Trump, which supported bond futures

after Trump's comments weighed early on, although the relatively modest,

short-lived bid has now faded. The curve flattening pattern has held throughout

the session.

- YM last trades 2.0 ticks lower, with XM +1.5 ticks on the day, with YM/XM at

42.00, and the cash equivalent at 42.3bp. The AU/U.S. 10-Year yield spread deals

at -58.1bp.

- Little reaction observed to the latest ACGB offering from the AOFM.

- Issuance elsewhere has garnered interest with McDonalds launching its

inaugural 3-tranche Kangaroo deal. Elsewhere QTC launched A$ 10-Year green

bonds, while Virgin Australia launched a senior unsecured round of financing.

- Bills trade 1-3 ticks lower through the reds. 3-Month BBSW continues to fix

lower. A$1.810bn worth of 9-Day RBA repo were ops dealt at an average of 1.710%.

- Q4 completed construction work, due Wednesday, provides the next highlight on

the domestic docket.