Aussie Bond futures gradually edged....>

AUSSIE BONDS: Aussie Bond futures gradually edged higher in Sydney trade, before

a bit of a pullback on flow at the close, which left YM +2.0 and XM +4.5 come

settlement, curve flattened, with YM/XM -2.5 at 43.5 as a result. Matters abroad

largely continue to drive price action, with that set to continue through

Wednesday's SYCOM session, as the phase 1 Sino-U.S. trade deal is set to come

under scrutiny.

- Domestically, PM Morrison noted that the "bushfire outlook continues to be

more benign" and that the country will "spend as much as it takes" to help fire

victims, per BBG.

- A very strong cover ratio (6.5375x) was seen at the latest auction of ACGB

2.75% 21 Apr 2024, albeit with "only" A$400mn offered. Elsewhere, desks noted

that QTC issued ~$A1.4bn across three lines, in a "material transaction." QTC

noted that the issuance took place in the recent past. KBN priced a A$50mn tap

of its 2.4% Nov' 2029 line at swaps +52bp.

- Bills finished 1-2 ticks higher through the reds.

- Housing finance data is due Thursday.