A late rally in futures took the.......>

AUSSIE BONDS: A late rally in futures took the space away from Sydney lows after

contracts followed the whim of broader risk appetite for most of the daytime

session, as Tsys and Coronavirus matters dictated flow. Truth be told, there was

little to drive the late bid, perhaps some front running of month-end flows

given the earlier, (very) light dip? Domestic data saw no real reaction, even

with a pretty hideous round of completed construction work data evident, which

got the Q4 GDP partials underway on a softer footing. The latest ACGB auction

from the AOFM was well enough received given the recent outright richening.

Semis saw QTC price A$1.25bn of new July 2034 paper at EFP +85 (mid-high in

guidance range) and NSW T Corp launch new March '33. Corporate issuance saw WSO

Finance mandate for potential A$ issuance.

- YM +2.5 and XM +1.0 come the close, still shy of the recent highs.

- Bills finished 2-4 ticks higher through the reds.

- Flow wise, the standout was a round of IBH0 lifts, which took place over a

couple of price levels and over a couple of clips.

- Q4 private sector CapEx is due tomorrow, as GDP partials continue to roll in.