AU Bonds have stabilised after they....>

AUSSIE BONDS: AU Bonds have stabilised after they eased in early dealing this

week, in sympathy with U.S. Tsys after following their U.S. counterparts lower

on SYCOM on Friday. It is worth noting that NAB will not be following Westpac,

CBA & ANZ, and as such will keep its variable mortgage rate on hold, which added

some additional pressure to rates early on, before a solid enough auction of

Nov' 2022 paper steadied the ship.

- The long end has ticked away from lows, leaving the domestic 3-/10-Year yield

differential at ~57.0bp, slightly steeper on the day, with the AU/U.S. 10-Year

spread last ~-36.0bp.

- The bill strip last trades 1-3 ticks softer, in sympathy with Bonds, back from

the early lows. 3-Month BBSW fixed 0.11bp higher today.

- The AU labour market report and NAB business survey present the major focal

points on the AU docket this week.