The space discounted local data and....>

AUSSIE BONDS: The space discounted local data and the auction of a non-basket

Bond (which was solid enough), choosing to focus on the broader risk tone, with

Bond futures just off of best levels last on the back of the NAFTA related

headlines from Politico (that were subsequently denied via source reports).

- While there were no comments on the outright direction of MonPol or the AUD

from RBA's Debelle, he noted that the RBA would like to be more confident that

inflation will be sustained at target, although he expects the current MonPol

stance to assist on this front.

- Elsewhere Australian PM Turnbull said that he is not anticipating another

leadership challenge this week, contrary to earlier reports. This came after

formal acceptance that the government won't take tax cuts forward to its next

election prospectus, after the relevant bill failed in the senate earlier today.

- The AU/US 10-Year yield differential has stabilised around ~-29bp for the time

being, while the AU 3-/10-Year yield differential hovers around 51.5bp.

- IRU8 is 2 ticks lower, with the rest of the Bill strip 1 tick better off after

3-Month BBSW fixed 0.25bp lower today.