Aussie 10-Year yields trade through....>

AUSSIE BONDS: Aussie 10-Year yields trade through the RBA cash rate & printed an

all-time low overnight. YM +2.0 ticks, XM +4.5 ticks. YM/XM trades at 40.0

ticks, with the cash equiv at 38.2bp.

- An auction of A$3.0bn of the new 1.50% 21 Jun 2031 ACGB was well received, EFP

of ~+9.5 & a solid cover ratio of 3.5883x. Widespread demand was noted, with

over 150 different bidders at the auction. Expect the line to be highly

correlated to XM futures going forwards (reminder it will drop into the XMH0

basket). XMM9 posted a fresh high on the back of the auction, before fading a

touch, moving back to best levels.

- Broader risk-off flows also helped to support the space.

- Bills trade 1-4 ticks higher thru the reds. RBA repo ops saw the Bank deal

A$835mn worth of 16-day ops at an average of 1.495%, while A$1.19bn worth of

61-day operations were dealt at an average of 1.439%.

- Q1 capex and building approvals headline the local docket tomorrow.