Aus paper followed the lead of Tsys,...>

AUSSIE BONDS: Aus paper followed the lead of Tsys, with some help from across

the Tasman as RBNZ Gov. Orr pointed to a wait & see approach, even as the Bank

stands ready to cut rates, if needed.

- YM -3.0, XM -6.0, with both contracts off lows. YM/XM sits at 27.0, with the

cash equivalent at 25.4bp.

- Corporate issuance saw Mercedes Benz price up A$150mn worth of 3-Year paper at

1.636%.

- Bills 1-4 ticks lower through the reds. RBA repo operations saw A$640mn of

13-day ops dealt at an average of 1.174%, with A$1.35bn worth of 42-day ops

dealt at an average of 1.187%.

- RBA Governor Lowe will speak at the Jackson Hole symposium over the weekend.

RBA's Debelle will speak next week, with Q2 CapEx & completed construction work

headlining next week's economic release docket.

- The AOFM weekly issuance schedule was fairly non-descript. Market will have to

digest ~A$1.3mn DV01 worth of ACGB gross issuance next week.