The space has started the week in......>

AUSSIE BONDS: The space has started the week in familiar territory, tracking

Tsys, with 10-Year futures topside failure from last week still providing the

most interesting point of note. The domestic 3-10 Year yield differential

continues to operate around 57bp, while the AU/US 10-Year spread trades around

-20bp.

- The Bill strip has been listless thus far.

- Traders focus on the final domestic GDP constituents, due today and tomorrow,

ahead of Wednesday's GDP release. Consensus looks for a headline Q/Q GDP print

of 0.8%, against Q4's 0.4%.

- Elsewhere the RBA will issue its latest MonPol decision on Tuesday with all of

those surveyed looking for the Bank to leave its cash rate unchanged at 1.5%. As

a result participants will scour the statement for any changes in rhetoric.

Rates markets are pricing in a mere 45% chance of a 25bp hike over the next 12

months, which is underpinning the shorter end of the yield curve.