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 U.S. Tsy counterparts

(AU/U.S. 10-Year yield spread last ~-33.0bp).

- The space drew further support from the RBA's 2018/19 corporate plan which

noted that high debt levels could complicate future policy decisions, and that

high debt could make the economy less resilient to shocks. The comments led to

the AU 3-Year yield trading below 2.00%, with the active 3-Year Bond future

trading above 98.00 for the first time since December of 2017.

- Bank of Montreal priced 3- & 5-Year Kangaroo paper, taking advantage of

AUD/CAD basis moves.

- The Bill strip last trades unch. to 4 ticks higher. 3-Month BBSW fixed nearly

0.7bp lower today, at 1.9450%.

- 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 ahead of the final national account print on Wednesday.