The space played catch-up to...........>

AUSSIE BONDS: The space played catch-up to Monday's goings on in SYCOM trade,

with bull flattening apparent in futures. Contracts sit shy of their respective

SYCOM peaks as we type, YM +5.0, XM +7.5, leaving YM/XM 2.5 ticks flatter vs.

Friday's settlement, at 34.0 ticks.

- Worth flagging a block trade from the final SYCOM session of last week, which

sources suggest looked like the unwinding of a YM/XM flattener position. 6,098

YM traded vs. 1,688 XM, with the spread crossing at 37.5.

- Bills print 2-5 ticks higher through the reds.

- The NAB business survey headlines the local docket today. The usual amount of

focus will fall on the labour market sub-components/commentary, although

business reaction to the well-documented bushfires provides another major focal

point in this month's reading.

- IBs currently price a ~78% chance of the RBA leaving its cash rate unchanged

when it convenes next week.