A limited session for the space. YM....>

AUSSIE BONDS: A limited session for the space. YM last deals 1.0 tick lower,

with XM last seen 2.0 ticks lower. YM/XM trades at 41.0 ticks, with the cash

equivalent at 39.8bp. Yields are mostly a touch lower, playing catch up after

gyrations seen post-NFP & during the market holiday observed on Monday.

- The NAB business confidence metric rose to 7 in May from 0 back in April,

seemingly boosted by the result of the Federal Election. Also worth noting that

the employment sub-metric moved back into positive territory after turning

negative in April (that was the first negative print for the sub-metric since

2016). Also worth flagging that the NAB survey suggested that "at current

levels, and based on historical relationships, the survey suggests that

employment will likely grow around 18k per month, over the next 6 months. With

ongoing strength in population growth, this rate of employment demand is

unlikely to see further reductions in the unemployment rate."

- Focus tomorrow turns to Westpac consumer confidence & comments from RBA Asst

Govs Kent & Ellis.