The space has moved lower as Chinese...>

AUSSIE BONDS: The space has moved lower as Chinese Pres. Xi delivered a very

measured message stressing that China wants to promote global multilateral free

trade.

- 3-Year bond futures last trade at 97.825 (-1.0 tick) while 10-Year Bond

futures last trade at 97.300 (-1.5 ticks).

- The domestic 3-/10-Year yield differential trades at 53.0bp (+1.5bp) as the

grind away from last week's flats continues, while the AU/US 10-Year yield

spread has narrowed to -11.1bp (+11.4bp).

- 3-Month BBSW fixed 0.5bp lower (after a downtick in the 3-Month US LIBOR fix

bringing an end to the run of >40 higher fixings) which did provide some support

to the Bill strip before the sell off on Xi's comments. The front 3 Bill

contracts are still focusing on the BBSW fix, trading unchanged to a tick

higher, while the remainder of the white and red Bill contracts last trade a

tick lower.