The space has operated in familiar.....>

AUSSIE BONDS: The space has operated in familiar territory, edging a touch

higher in early dealing this week as Tsys tick higher. Risk assets have taken a

hit in early dealing as the US-China trade issue dominates traders' thoughts,

lending some support to fixed income, although liquidity is diminished with

China & HK out on holiday today.

- The domestic 3-/10-Year yield spread continues to hover just above 55bp while

the AU/US 10 Year spread trades at ~-25.0bp, as Aussie Bonds' outperformance

persists.

- 3-Month BBSW fixed around 0.1bp higher today, with the white and red Bill

contracts last trading unchanged to 3 ticks higher, tracking Bonds.

- The auction of the Nov '29 Bond (not in the 10-Year Bond future's deliverable

basket) was well digested, as the bid to cover ticked lower alongside an

increase in the tendered size when compared to the most recent auction.

- The RBA meeting minutes from its most recent decision are due tomorrow, while

RBA Gov. Lowe will appear at the ECB's Sintra conference on Wednesday.