The space followed U.S. Tsys higher....>

AUSSIE BONDS: The space followed U.S. Tsys higher overnight on the back of

chatter suggesting that U.S. Pres. Trump was unhappy with Fed MonPol under

Powell i.e. less easy money, which was later confirmed. Trump noted that he

disagrees with Fed re: rate hikes & that he is "not thrilled" with Powell. Trump

also noted that he will criticise the Fed if it continues to raise rates. Trump

also stated that he doesn't "anticipate much" from China trade talks in

Washington later this week, and believes that there is "no time frame" for

ending the China trade dispute.

- On the AU political front Peter Dutton has resigned from his role in the

Australian cabinet after losing the leadership spill within the Liberal Party.

Eyes now the lookout for any other resignations from within the cabinet.

- Aussie Bonds have edged away from SYCOM closing levels & have lagged Tsys on

the latest move with the AU/U.S. 10-Year spread hovering around -30bp, while the

domestic 3-/10-Year curve continues to flatten. Bills last trade 1-2 ticks

lower, with 3-Month BBSW fixing 0.3bp higher today.

- Focus on the RBA mins after Gov. Lowe offered nothing new early this morning.