ANZ note that "there has been..........>

AUSSIE BONDS: ANZ note that "there has been something of a turn in sentiment

around ACGBs since the revision to the JobKeeper costing. As we wrote earlier in

the week, we are sceptical about the impact this will have on how much the AOFM

ultimately has to do. Over the course of the next six months, we still think the

3s/10s curve will steepen. But, in the very near term, there is a case for ACGB

outperformance, or at least consolidation, at the long end. For Japanese

investors, 3m FX-hedged 10y ACGB yields are at their highest level in around two

years, sitting around 30bp above 10y JGB yields. This may spur an increased

interest in offshore demand, particularly with there being more being certainty

about the stability of AUD funding conditions (and therefore the ability to roll

hedges)."