After a sanguine SFE session on........>

AUSSIE BONDS: After a sanguine SFE session on Monday, activity picked up in late

SYCOM/early SFE trade, with a focus on Brexit optimism.

- YM & XM have cracked through Monday's lows, with YM -2.0 ticks and XM -1.5

ticks. YM/XM trades at 41.75, with the cash equivalent at 43.3bp.

- Bills run 1-3 ticks lower through the reds. A$1.986bn worth of 24-day RBA repo

ops were dealt at an average of 2.054%.

- Focus today turns to housing finance data and the latest NAB survey.

Participants may look to the labour market components of the latter with

heightened interest, given the RBA's focus on the space.

- Looking to the backend of the week, ACGB 5.25% 15 March 2019 will mature, with

A$13.21bn in outstanding notional and ~A$347mn in coupon payments due. Today's

~A$100mn I/L supply is the sole instance of AOFM issuance this week, so net cash

flow effects should support the broader space.