The space has eased from best levels...>

AUSSIE BONDS: The space has eased from best levels after being driven by

offshore developments, in the main. The heightening of Sino-U.S. trade war

tensions was the dominant theme for core global FI during the session.

- YM last deals 4.5 ticks higher with XM +8.5 ticks, leaving YM XM at 23.0 and

the cash equivalent at 21.4bp.

- It is also worth recapping RBA Governor Lowe's comments from the weekend. Lowe

reiterated that central banks have limited ability to cushion the global economy

from the headwinds it faces at present, noting that "political shocks are

turning into economic shocks," and highlighting a risk towards easy policy

resulting in inflated asset prices.

- The latest 10-Year basket ACGB auction was well received, but small in size.

- Bills trade 3-5 ticks higher through the reds.

- RBA repo operations saw A$1.0bn worth of 16-day ops dealt at an average of

1.141%, A$990mn worth of 38-day ops dealt at an average of 1.183% & A$1.012bn

worth of 70-day ops dealt at an average of 1.137%.