The futures curve flattens in early....>

AUSSIE BONDS: The futures curve flattens in early Sydney trade with YM unchanged

and XM +4.5, as the latter looks through Friday's Sydney session highs, with the

broader swings in risk appetite driving the space since the final settlement of

last week.

- Sino-Australian tensions remain apparent, although Trade Minister Birmingham

has noted that the death sentence of an Australian man through a Chinese court

for drug smuggling shouldn't necessarily be seen as retaliation re: the well

documented tensions.

- Early Monday also saw PM Morrison outline the need for prudence re: government

spending, with the impending unveiling of a A$1.5bn infrastructure spending

place flagged by local press reports in the early Sydney hours.

- The local docket is empty today, so focus falls on broader market flows and

the latest round of Chinese economic activity data.