The space dipped lower at the open,....>

AUSSIE BONDS: The space dipped lower at the open, alongside US Tsys, as the June

12 US-North Korea summit seems a more likely proposition than it did 48 hours

ago, with Trump seemingly a little more upbeat on the matter in comments made

over the weekend. Also the Italian President has blocked the formation of the

M5S/League government as a euro-sceptic was proposed as the economy minister,

which will likely send Italy back to the polling booths. Both these factors are

allowing the space to sell off early on.

- However, dip buyers stepped in, perhaps aided by the depleted AOFM issuance

calendar apparent over the next 2 weeks.

- 3-Year Bond futures last trade at 97.830 (+3.0 ticks), while 10-Year Bond

futures trade art 97.245 (+4.0 ticks). The domestic 3-/10-Year yield

differential trades so 0.9bp tighter at 61.2bp, while the AU/US 10-Year spread

trades 1.1bp tighter at -18.3bp.

- 3-Month BBSW fixed unchanged today, with the white & red Bill contracts last

trading one tick lower to 2 ticks higher.

- Traders focus on Thursday's Q1 CapEx print.