AU Bonds tracked U.S. Tsys.............>

AUSSIE BONDS: AU Bonds tracked U.S. Tsys overnight, largely driven by Brexit

related news flow, and have operated in a tight range in early dealing, sticking

close to their SYCOM closing levels.

- The domestic 3-/10-Year cash yield differential hovers just above ~56.0bp,

running a little steeper on the day, while the AU/U.S. 10-Year yield spread sits

near enough unch. at ~33.5bp.

- The Bill strip deals unch. to 1 tick higher last. 3-Month BBSW fixed ~0.25bp

higher today.

- Corporate issuance has continued at a healthy clip, with Paccar Financial

launching a minimum of A$100mn worth of 4-Year Notes & Suncorp Metway launching

a new A$ benchmark covered bond package. Both lines should price later today.

- Sovereign issuance generates the largest interest on the docket over the next

2 sessions with the AOFM set to sell A$1.0bn worth of 2.50% 21 May 2030 Bonds

tomorrow.