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 a little more upbeat on the matter in comments made over the

weekend. Elsewhere the Italian President blocked the formation of the M5S/League

government as he vetoed their EconMin nomination, Savona, owing to his anti-EUR

stance. This will likely send Italy back to the polling booths.

- Dip buyers stepped in, perhaps aided by the depleted AOFM issuance calendar

apparent over the next 2 weeks. RBA's Harper noted that "falling house prices

wouldn't scuttle a rate rise," as he re-iterated that the RBA has a "steady as

she goes" approach to MonPol pointing to slow wage growth.

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

futures trade at 97.250 (+4.5 ticks). The domestic 3-/10-Year yield differential

trades some 1.5bp tighter at 60.6bp, while the AU/US 10-Year spread trades 0.6bp

tighter at -18.8bp.

- 3-Month BBSW fixed unchanged today, with the white & red Bill contracts last 1

tick lower to 2 ticks higher.