Aussie bond futures gradually ticked...>

AUSSIE BONDS: Aussie bond futures gradually ticked away from best levels,

playing catch up to Tsys. There was little reaction to the latest round of

Chinese activity data.

- The early bid came on the back of a softer 3-Month BBSW fixing, with some

pointing to the effects of this week's large ACGB 15 Mar 2019 redemption/coupon

flows as impacting the fix/providing broader support for the space.

- Roll activity garnered the most attention today.

- YM trades +0.5 tick, with XM -1.25 ticks. YM/XM trades at 43.00, with the cash

equivalent at 44.0bp. The AU/U.S. 10-Year yield spread trades at -65.7bp.

- On the corporate issuance front Connect East launched 7-Year paper, with IPT

at swaps +155-160bp, while Rabobank Australia's 3.5 Year A$ paper IPT was noted

at IOIs +83bp and Stockland's max A$200mn 5-Year issue had guidance revised to

swaps +158-160bp.

- Bills trade 1-2 ticks higher through the reds. RBA repo ops saw A$900mn worth

of 18-day ops dealt at an average of 2.042%, with A$736mn worth of 34-day ops

dealt at an average of 2.032%.