Aussie Bills Weekly Update - Most......>

AUSSIE BONDS: Aussie Bills Weekly Update

- Most white & red contracts settled slightly higher this week.

- Monday saw the space under some modest pressure owing to strong Chinese PMI

data & optimism surrounding the Sino-U.S. trade talks. The major bullish impetus

came on the back of a tweak to the RBA's concluding paragraph in the statement

that accompanied its latest MonPol decision on Tuesday, which some believe opens

the door to the potential for rate cuts. This was before strong Australian

trade, and more importantly retail sales data, coupled with another strong

Chinese PMI reading saw pressure creep back in.

- The latest round of Sino-U.S. trade talks didn't result in a Trump-Xi summit

announcement but has seen Chinese policymakers highlight a new consensus.

- Funding market developments were limited after an uneventful end to Q1.

- Focus next week moves to a speech from RBA Deputy Governor Debelle, covering

"the state of the economy." The RBA will also present its latest Financial

Stability Review. Housing finance data headlines the economic docket, with

Westpac consumer confidence data also due.