The Trump/EM generated risk off........>

AUSSIE BONDS: The Trump/EM generated risk off flows dragged the space higher

during the SYCOM session, leaving the domestic 3-/10-Year yield differential a

little flatter, as AU Bonds continued to outperform their Tsy counterparts

(AU/U.S. 10-Year yield spread last ~-32.5bp).

- The RBA's 2018/19 corporate plan noted that high debt levels could complicate

future policy decisions, and that high debt could make the economy less

resilient to shocks. All in all these comments aren't surprising but have put a

very modest bid into AU fixed income over the last few minutes.

- The Bill strip last trades unchanged to 3 ticks higher on the back of the

overnight move in Bonds. 3-Month BBSW fixed nearly 0.7bp lower today, at

1.9450%.

- Focus today will fall on the AOFM's issuance schedule. The RBA MonPol decision

provides the highlight of the AU docket over the next week, with GDP input data

in the form of inventories, current A/c & company profits all due of the final

national account print on Wednesday.