The space has discounted local data....>

AUSSIE BONDS: The space has 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

headlines from Politico.

- Domestic politics continue to bubble in the background with PM Turnbull set to

speak. The press conference comes on the back of the Senate voting down the

coalition government's signature economic policy, the company tax cut bill,

earlier today. There are talks of a fresh leadership spill taking place within

the Liberal Party.

- 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.

- The Bill strip is largely unchanged, with 3-Month BBSW fixing 0.25bp lower

today.

- Participants await a speech from RBA Asst. Gov. Guy Debelle, covering the

subject of "low inflation."