A pretty horrific headline Private.....>

AUSSIE BONDS: A pretty horrific headline Private CapEx print for Q4 out of

Australia, with the -2.8% Q/Q well outside the lower bound of the BBG survey

(-1.5%). By sector, manufacturing was particularly soft, -10.1% on the quarter,

with mining (-2.7%) and other selected industries (-1.9%) rounding off a weak

set of sectoral data. Equipment, plant and machinery Capex was actually +0.8% in

Q/Q terms in Q4, while building and structures fell 5.9 Q/Q.

- Looking to numerical estimates; 2020/21's initial estimate was firmer than

expected at $100.2bn, while the 5th estimate for 2019/2020 was nudged up to

A$120.3bn vs. A$116.7bn last time out, which was also a touch firmer than most

expected. Both represented solid upticks vs. like for like comparisons 1 year

ago.

- The positives on the numerical estimate side, coupled with the uptick in pant

and machinery CapEx is seemingly outweighing the poor headline, at least in

terms of market reaction. But bonds were little changed over the release, if

anything, marginally lower, with YM & XM both +2.0 last.

- Bills sit 1-2 ticks higher through the reds on the day.