The space moved to fresh lows after....>

AUSSIE BONDS: The space moved to fresh lows after 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 (as the guidance

was in line with the majority of estimates), but 10-Year futures have since made

fresh lows, as the 20-Year sector dragged the space lower, before the complex

stabilised and edged back away from lows.

- The domestic 3-/10-Year yield differential last trades at 57.0bp.

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

unchanged to 2 ticks softer after some early pressure.

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

due Thursday, headline this week.