The space continues to operate at or...>

AUSSIE BONDS: The space continues to operate at or around Friday's SYCOM session

highs, with 10-Year futures last 5.0 ticks higher at 97.215 and 3-Year futures

2.5 ticks higher at 97.925.

- The domestic curve has flattened, with the 3-/10-Year yield differential last

2.8bp narrower at 74.2bp.

- The AU/US 10-Year spread continues to operate in negative territory and is

last at -7.6bp.

- A 10-year futures basket constituent bond's auction was met with strong demand

in early dealing, although price action in the wake of the auction has been

fairly muted.

- The front bill contract (IRH8) experienced decent 2-way flow at 98.19, with

the contract a tick lower than settlement, while the remainder of the white

contracts trade a tick higher.

- Looking forward to the rest of the week, domestic supply, the testimony from

Fed Chair Powell to Congress & private capex data will likely provide the most

interest.