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 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.

- 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 at 97.255 (+5.0 ticks). The domestic 3-/10-Year yield differential

trades some 1.5bp tighter at 60.6bp, while the AU/US 10-Year spread trades

virtually unchanged at -19.3bp back from the early tights.

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

unchanged to 3 ticks higher.

- Traders focus on Thursday's Q1 CapEx print.