Aussie bond futures edged away from....>

AUSSIE BONDS: Aussie bond futures edged away from the SYCOM lows on the

aforementioned Chinese PMI data and disappointing earnings from some of the

major global tech players. The space also managed to draw support from month-end

flows, with Morgan Stanley alluding to larger than usual month-end extensions

for the space. Local credit data had no impact on the space. 

- YM last +0.5 tick, with XM -1.0 tick. YM/XM trades at 54.5 ticks, with the

cash equivalent at 50.0bp. Bills trade unchanged through the reds.

- Sizeable RBA repo ops were noted today, with month-end & tax flows touted as

the driver. A total of A$4.32bn was allotted across the 14-, 36-, 76- & 174-Day

tenors, at average rates of 1.709%, 1.696%, 1.662% & 1.599% respectively, with

the allocation skewed to the longer tenors.

- Elsewhere, there was some attention given to the latest uptick in bank

deposits (via the APRA data), which corresponds with the move lower in funding

rates during Q1 (plentiful cash pay-outs via stock dividends & bond redemptions

were highlighted previously).

- Focus turns to NZ labour mkt data across the Tasman & ACGB 2030 supply.