The trade war developments evident.....>

AUSSIE BONDS: The trade war developments evident over the last 24 hours or so,

culminating in China being labelled a currency manipulator by the U.S. Tsy, has

supported the space, and provided a curve ball for the RB as it meets to issue

its latest MonPol decision (see our full preview for further details). Although

a strong NZ labour market report from across the Tasman has seemingly allowed

the space to pare back from best levels

- YM last +0.5, with XM +2.5, leaving the curve a touch flatter than settlement

with YM/XM dealing at 35.0.

- The cash space is playing catch up after the elongated weekend, with benchmark

10-Year yields having a look below 1.00% for the first time ever.

- Bills trade 1 tick lower to 1 tick higher on the day.

- The aforementioned RBA MonPol decision headlines the local docket today, with

the latest trade balance print also due, although the broader risk

backdrop/China's response to the FX manipulator label may overshadow domestic

developments.