The space has edged a touch lower,.....>

AUSSIE BONDS: The space has edged a touch lower, in sympathy with U.S. Tsy

futures, as U.S. equity index futures have started the week on the front foot,

with cash Tsys closed until the London open as Japan observes a market holiday.

- Looking to domestic factors, the AOFM launched its new 2.75% 21 May 2041

Treasury Bond, which was expected this week. The AOFM noted that "initial price

guidance for the issue is a spread of 39.5 to 44.5 basis points over the implied

bid yield for the primary ten-year Treasury Bond futures contract." Initially

the IPT generated little follow-through, but 10-Year futures have since made

fresh lows.

- The domestic 3-/10-Year yield differential last trades at 56.5bp.

- 3-month BBSW fixed 0.12bp higher today, with the Bill strip last trading 1-3

ticks softer.

- The RBA July meeting minutes, due Tuesday, and domestic labour market report,

due Thursday, headline this week. Participants will also eye China's Q2 GDP

release & Jun activity data due later today.