Aussie bond futures edged higher on....>

AUSSIE BONDS: Aussie bond futures edged higher on SYCOM, with a continued focus

on the Coronavirus during EU & NY hours lending support. Flattening momentum has

continued, with YM +0.5, XM +2.0, leaving YM/XM at 37.5. XM has had a look

through overnight highs, but faded from best levels. Local flash CBA PMI data

revealed a deeper rate of contraction across all 3 metrics, with CBA

highlighting that "there is some fundamental weakness in the Australian econ

associated with consumer constraint, the residential construction downturn & the

reluctance of biz to invest. But the PMI results are also being influenced by

the terrible bushfires." However, it wasn't completely downbeat: "The gloom

should not be overdone. Key leading indicators like new orders and employment

are showing a notably stronger result... And expectations about future business

remain at encouraging levels."

- Across the ditch, NZ CPI provided marginal beats vs. exp., Y/Y print neared

2.0%. Trimmed mean metrics also showed a notable uptick Y/Y, with non-tradables

fairly steady. RBNZ sectoral CPI model may provide some impetus later today.

- Focus now on the AOFM's weekly issuance schedule ahead of the holiday weekend.