ANZ note that "funding pressures.......>

AUSSIE BONDS: ANZ note that "funding pressures have eased, further than we had

expected, but are now turning up again. The rates curve has likely seen the

steepening finish for the front end as yields dropped and funding eased. Short

and mid-curves look at normal levels. The AOFM is set to finish borrowing in the

next few weeks. We expect the long end to cheapen relative to the belly."

- ANZ also expect that the 2023 & 2029 buckets will see more supply, resulting

in them cheapening against surrounding issues. They go on to note that "the

domestic 10s/30s curve appears near the end of its run. We lean into the

richness of 30s, with an ACGB 2021/2029/2047 butterfly trade."

- ANZ believe that AU/US spreads will likely maintain tight ranges, and they

"still favour compression of the AU/US 30-Year spread towards 0bp."

- ANZ also point out that "swap spreads are normalising in the 3 year tenor, the

EFP box is higher than we expected," but they believe that they should narrow.